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Set Public Hearing for Proposed Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements_InitiateCopyrighted March 7, 2024 City of Dubuque Items to be set for Public Hearing # Special Meeting 01. ITEM TITLE: Set Public Hearing for Proposed Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements SUMMARY: City Manager recommending that a March 25, 2024, public hearing be set for the establishment of the Proposed Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements. RESOLUTION Setting a Public Hearing on the Proposed Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements SUGGESTED Receive and File; Adopt Resolution(s), Set Public Hearing for March 25, DISPOSITION: 2024Suggested Disposition: ATTACHMENTS: Description Type MVM Memo City Manager Memo Staff Memo Staff Memo FY25 Budget & Fiscal Policy Guidelines Supporting Documentation FY25 Improvement Package listing Supporting Documentation Resolution Resolutions Notice of Public Hearing Supporting Documentation Proposed FY25 Tax Levies Supporting Documentation THE C DUUB�QFE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Set Public Hearing for Proposed Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements DATE: March 5, 2024 Dubuque All-Ameriea City 2007-2012.2013 2017*2019 Chief Financial Officer Jennifer Larson is recommending that a March 25, 2024, public hearing be set for the establishment of the Proposed Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements. At the March 25, 2024, public hearing, the only options available to City Council are to approve the amount of the proposed Fiscal Year 2025 tax rate and dollars that is established on March 7, 2024, as is or decrease it. The FY2025 budget guidelines call for a 0.25% increase in the property tax rate, which increases the property tax rate from $9.9014 in FY24 to $9.9264 in FY 25, which would be a 5.00% or $40.75 tax increase for the average Dubuque homeowner, increase in property tax for commercial (25.55%, $850.63) and an increase for industrial (3.89%, $187.33). In FY2024, the City levied $26,623,300 in property tax revenue to support the general fund and in FY 2025 the budget guidelines would levy $28,223,481 in property tax revenue to support the general fund. Property Tax Rate % 0.25% $0.02 Property Tax Asking 6.01 % $1,600,181 Average Residential Payment 5.00% $40.75 Average Commercial Payment 25.55% $850.63 Average Industrial Property 3.890/ $187.33 Since 1989, the average homeowner has averaged an annual increase in costs in the City portion of their property taxes of 1.36%, or about $8.41 a year. If the State had been fully funding the Homestead Tax Credit, the increase would have averaged approximately $5.67 a year. For the proposed Fiscal year 2025, Dubuque has the LOWEST property tax rate as compared to the Fiscal Year 2024 rate of the eleven largest cities in the state and information available about their proposed Fiscal Year 2025 rate. The highest rate (Waterloo) is 98.77% higher than Dubuque's rate, and the average is 53.48% higher than Dubuque's recommended Fiscal Year 2025 property tax rate. Fiscal Year 2025 City Property Tax Rate Comparison for Eleven Largest Iowa Cities Rank 11 city Waterloo (FY24) Tax Rate $19.73 10 Council Bluffs (FY24) $18.26 9 Des Moines (FY24) $17.56 8 Davenport (FY24) $16.78 7 Cedar Rapids (FY24) $16.25 6 Sioux City (FY24) $15.76 5 Iowa City (FY24) $15.63 4 West Des Moines (FY24) $11.76 3 Ankeny (FY24) $10.53 2 Ames (FY25) $10.09 1 Dubuque (FY25) $9.93 Average w/o Dubuque 15.24 In July 2023, Moody's Investor Service upgraded the City's outstanding general obligation bonds from Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to Al. Notable credit factors include strong financial operations and ample revenue -raising flexibility, which has resulted in steadily improved available fund balance and cash. The City serves as a regional economic center and its regional economic growth rate has outpaced the national rate over the past five years. These credit ratings are affirmation of the sound fiscal management of the mayor and city council, put Dubuque in a strong position to capitalize on favorable financial markets, borrow at low interest rate when necessary, and make critical investments in the community. 2 With this recommendation the City will be maintaining healthy financial reserves: General Fund Reserve Projections: FY2017 $600,000 ... $14,172,661 ... 20.09 % FY2018 $1 700 000 $16 460 491 23.81 % FY2019 $1 050 000 $20 945 090 29.06 % FY2020 $ $21,744,160 31.24 % FY2021 $ $31 089 468 40.72 % FY2022 $ $41,259,518 49.16 % 45.09 % FY2023 $ $35 459 518 50.18 % 45.25 % FY2024 $ $29 659 518 41.97 % 40.21 % FY2025 $ $23,859,518 33.76 % 35.17 % I believe that this recommendation will continue the forward momentum of our community and our organization by achieving the Mayor and City Council priorities, continuing some major capital improvement programs and leveraging Federal and State funding opportunities. I concur with the recommendation and respectfully request Mayor and City Council approval. k�4 Mich el C. Van Milligen MCVM/jml/sav Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jennifer Larson, Chief Financial Officer 3 Dubuque THE C DUUB%All-A.eriea 6iiy I��I► Masterpiece on the Mississippi p pp zoo7•o 13 zoi7*20*zoi9 TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Chief Financial Officer SUBJECT: Set Public Hearing for Proposed Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements DATE: March 5, 2024 I am recommending approval of the resolution setting the public hearing for establishing the Proposed Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements. At the March 25, 2024, public hearing, the only options available to City Council are to approve the amount of the proposed Fiscal Year 2025 tax rate and dollars as is or decrease it. Iowa House File 718 passed during the 2023 legislative sessions, replaces previous changes made through Iowa Senate File 634 passed during the 2019 legislative sessions, makes changes to Iowa city and county budgets and taxes for Fiscal Year 2025 and later. Additional steps have been added to the budget approval process. The City of Dubuque is specifically impacted by the following steps of this new legislation: 1. Limits the General Fund levy by constraining growth by 2% or 3% each year, depending on the trigger hit: • Non-TIF taxable growth under 3%, no reduction • Non-TIF taxable growth over 3% but less than 6%, 2% reduction factor • Non-TIF taxable growth over 6%, 3% reduction factor The City of Dubuque Non-TIF taxable growth for FY2025 is 5.71 %, the General Fund levy is constrained by a growth reduction factor of 2%. The General Fund levy for FY2025 is $7.94118 instead of the maximum levy of $8.10. Although the City is restricted to $7.94118 in the General Fund levy, the City has the flexibility to levy up to $15.2 million or a levy rate of $5.35681 in the Special Revenue Levies for employee benefits. In Fiscal Year 2024, the Special Revenue levy was $0.91356 and totaled $2.4 million. Any reduction in the General Fund levy can be shifted to the Special Revenue levies. 2. March 15- Cities must file a report with Iowa Department of Management containing information specified by new law to be contained in mailings. 2 3. March 20: County Auditor must send each property owner or taxpayer with the county by regular mail an individual statement with the specified information broken out by political subdivision comprising the taxpayer's district. Taxpayer Statements must include: • Total Fiscal Year 2024 Tax Rate and Dollars • Combined effective property tax rate for the city calculated using the sum of Fiscal Year 2024's actual property tax certified for levy of all of city's levies • Proposed Fiscal Year 2025 Tax Rate and Dollars • If the Proposed Fiscal Year 2025 Property Tax Dollars exceed the Fiscal Year 2024 actual property tax dollars, a detailed statement of the major reasons for the increase, including the specific purposes or programs for which the city is proposing an increase. • An example comparing the amount of property taxes on a residential property with an actual value of $100,000 in the current fiscal year and such amount on the residential property using the proposed property tax dollars for the budget year, including the percentage difference in such amounts. • An example comparing the amount of property taxes on a commercial property with an actual value of $100,000 in the current fiscal year and such amount on the commercial property using the proposed property tax dollars for the budget year, including the percentage difference in such amounts. • The city's percentage of total property taxes certified for levy in the owner's or taxpayer's taxing district in the current fiscal year amount all taxing authorities. • The date, time, and location of the city's public hearing on the information contained in the statements. • Information on how to access the city's internet site, the city's statements, and other budget documents for prior fiscal years. 4. Public hearing on proposed property tax amounts for the budget year and new taxpayer statements. • In addition to a public hearing to adopt the budget. • Replaces maximum property tax dollars public hearing held in prior years. • Must be separate from any other meeting of City Council, including any other meeting or hearing related to the budget. • City Council can decrease, but not increase, the proposed property tax amount to be included in the budget. 5. Budget certification deadline to Iowa Department of Management is April 30th instead of March 31 st. • If City has a debt service levy, budget must be adopted before April 15th. The proposed Fiscal Year 2025 tax rate and dollars is developed and adopted by City Council during the budgeting process to provide targets or parameters within which the budget recommendation will be formulated within the context of the City Council Goals and Priorities established in August 2023. The recommended budget presented by the City Manager may not meet all these targets due to changing conditions and updated information during budget preparation. To the extent the recommended budget varies 3 from the guidelines, an explanation will be provided in the printed budget document. By State law, the budget that begins July 1, 2023 must be adopted by April 30, 2024 for cities without a debt service levy or before April 15, 2024 for cities with a debt service levy. The City of Dubuque has a debt service levy and must adopt the budget before April 15, 2024. The FY2025 budget recommendation funds $369,323 for annually recurring improvement packages funded by property taxes in the General Fund and $519,518 for non -recurring improvement packages funded by FY2025 DRA Distribution and sanitary sewer administrative overhead. For FY2025 there are $3,239,438 in general fund improvement package requests, with $890,417 recommended for funding. To provide context for the basis of the proposed Fiscal Year 2025 tax rate and dollars recommended in FY2025, the FY2025 Budget and Fiscal Policy Guidelines and the summary of all decision packages requested are attached. In FY2024, the City levied $26,623,300 in property tax revenue to support the general fund and in FY 2025 the budget guidelines would levy for $28,223,481 in property tax revenue to support the general fund. The FY2025 budget guidelines call for a 0.25% increase in the property tax rate, which increases the property tax rate from $9.9014 in FY24 to $9.9264 in FY 25, which would be a 5.00% or $40.75 tax increase for the average Dubuque homeowner, increase in property tax for commercial (25.55%, $850.63) and an increase for industrial (3.89%, $187.33). Property Tax Rate % Change 0.25% $ Change $0.02 Property Tax Asking 6.01 % $1,600,181 Average Residential Payment 5.00% $40.75 Average Commercial Payment 25.55% $850.63 Average Industrial Property 3.89%1 $187.33 Since 1989, the average homeowner has averaged an annual increase in costs in the City portion of their property taxes of 1.36%, or about $8.41 a year. If the State had 0 been fully funding the Homestead Tax Credit, the increase would have averaged approximately $5.67 a year. The City Council is only considering the FY2025 property tax rate. The FY2026 - 2029 tax rates are only projections. The future budget projections will be updated each year so that City Council will have an opportunity in the next year to change FY2026. The City property tax rate projected in these budget guidelines and impact on the average residential property owner ($196,508 assessed value) is as follows: Fiscal Year FY 2025 City Tax Rate $9.92638 % Change in Tax Rate 0.25% FY 2026 $10.3113 3.88% FY 2027 $10.7659 4.41 % FY 2028 $11.2957 4.92% FY 2029 $11.8400 4.82% Fiscal Year FY 2024 "City".. Tax Askings $26,623,300 Tax Askings Residential ..impact Property Residential Property FY 2025 $28,2237481 +6.01 0/ +5.00% +$40.75 FY 2026 $30,088,752 +6.61 °/ +3.88% +$33.19 FY 2027 $32,0407251 +6.490/ +4.41 % +$39.20 FY 2028 $34,286,695 +7.01 °/ +4.92% +$45.67 FY 2029 $36,654,005 +6.900/ +4.82% +$46.93 The recommended guideline is a 5.00% or $40.75 increase for the average residential property owner assuming the Homestead Property Tax Credit is fully funded. A one percent increase in the tax rate will generate approximately $280,987. The State's residential rollback factor will decrease from 54.6501 % in 2024 to 46.3428% or a 15.20% decrease in FY 2025. The decrease in the residential rollback factor decreases the value that each residence is taxed on. This decreased taxable value for the average homeowner ($87,169 taxable value in FY 2024 and $91,067 taxable value in 2025) results in less taxes to be paid per $1,000 of assessed value. For the proposed Fiscal Year 2025, Dubuque has the LOWEST property tax rate as compared to the eleven largest cities in the state. The highest rate (Waterloo (FY24)) is 98.77% higher than Dubuque's rate, and the average is 53.48% higher than Dubuque. Dubuque's recommended FY 2025 property tax rate is $9.93 (increase of 0.25% from FY 2024). 5 Fiscal Year 2025 City Property Tax Rate Comparison for Eleven Largest Iowa Cities Rank city Tax Rate 11 Waterloo (FY24) $19.73 10 Council Bluffs (FY24) $18.26 9 Des Moines (FY24) $17.56 8 Davenport (FY24) $16.78 7 Cedar Rapids (FY24) $16.25 6 Sioux City (FY24) $15.76 5 Iowa City (FY24) $15.63 4 West Des Moines (FY24) $11.76 3 Ankeny (FY24) $10.53 2 Ames (FY25) $10.09 1 Dubuque (FY25) $9.93 Average w/o Dubuque 15.24 Significant issues impacting the FY 2025 budget include the following: 1. State Funded Backfill on Commercial and Industrial Property Tax a. Iowa Senate File 619 was signed into law by Governor Reynolds on June 16, 2021. The Bill provides that, beginning with the FY 2023 payment, the General Fund standing appropriation for commercial and industrial property tax replacement for cities and counties will be phased out in four or seven years, depending on how the tax base of the city or county grew relative to the rest of the state since FY 2014. Cities and counties where the tax base grew at a faster rate than the statewide average from FY 2014 through FY 2021 will have the backfill phased out over a four-year period from FY 2023 to FY 2026, while those that grew at a rate less than the statewide average will have the backfill phased out over an eight -year period from FY 2023 to FY 2030. The City of Dubuque's tax base grew at a rate less than the statewide average and will have a backfill phase out over an eight -year period from FY 2023 to FY 2030. The FY 2025 State backfill for property tax loss is estimated to be $808,254 for all funds (General Fund, Tort Liability Fund, Trust and Agency Fund, Debt Service Fund, and Tax Increment Financing Funds). b. House File 2552, Division 11, passed in the 2022 legislative session and signed by the Governor on May 2, 2022, repeals the Business Property Tax Credit (BPTC). In lieu of the BPTC, beginning with assessment year 2022, all commercial, industrial, and railroad properties will receive a property assessment limitation on the first $150,000 of value of the property unit equal to the assessment limitation for residential property. The value of the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it has in the past. 6 The $125 million fund will continue to be appropriated each year for reimbursements to counties. County auditors will file a claim for the first tier of the assessment limitations in September. Assessors will continue to provide the unit configuration for auditors as these definitions remain the same. Taxpayers are not required to file an application to receive the first $150,000 of assessed value at the residential assessment limitation rate. If the total for all claims is more than the appropriated amounts, the claims will be prorated, and the Iowa Department of Revenue will notify the county auditors of prorated percentage by September 30`h. Lawmakers believe the new standing general fund will exceed the projected level of claims for fiscal years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement claims will begin being prorated. The projected backfill for Dubuque for the two-tier assessment limitation in Fiscal Year 2025 is estimated to be $576,898. 2. Gaming Revenue. Gaming revenues generated from lease payments from the Dubuque Racing Association (DRA) are estimated to increase $322,542 from $7,083,037 in FY 2024 to $7,405,579 in FY 2025 based on revised projections from the DRA. This follows a $429,640 decrease from budget in FY 2024 and a $2,283,349 increase from budget in FY 2023. b. February 2025 DRA distributions will be used in Fiscal Year 2025 to fund non -recurring improvement packages and stormwater fee grants. This is a change from past use of DRA distributions because all funds will be used for Fiscal Year 2025 operations. 3. Interest Revenue a. Interest revenue increased from $1,500,016 in FY 2024 to $1,718,055 in FY 2025. The FY 2025 budget is based on FY 2024 actual annualized. 4. Local Option Sales Tax Revenue a. Sales tax receipts are projected to increase 3.18% ($398,711) over FY 2024 budget and 3.00% over FY 2024 actual of $12,550,987 based on FY 2024 revised revenue estimate. 5. Hotel/Motel Tax Revenue a. Hotel/motel tax receipts are projected to increase 15.39% ($450,387) over FY 2024 budget and 3.00% over FY 2024 re -estimated receipts of $3,278,041. 6. Riverfront Property Lease Revenue a. Riverfront property lease revenue is projected to increase by $212,448 in FY 2025 to $4,110,287 due to the estimated consumer price index increase. 7. Franchise Fee Revenue a. Natural Gas franchise fees have been projected to increase three percent over 7 FY 2023 actual of $1,921,498. Also, Electric franchise fees are based on FY 2023 Actual of $1,921,498 plus 9.8% based on Alliant Energy's interim rate increase. 8. Moody's Investors Service Change in Methodology a. In July 2023, Moody's Investor Service upgraded the City's outstanding general obligation bonds from Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to Al. Notable credit factors include strong financial operations and ample revenue -raising flexibility, which has resulted in steadily improved available fund balance and cash. The City serves as a regional economic center and its regional economic growth rate has outpaced the nation over the past five years. b. In November of 2022, Moody's Investors Service ("Moody's") released a new rating methodology for cities and counties. Two significant changes result from the new methodology; cities are now assigned an issuer rating meant to convey the creditworthiness of the issuer as a whole without regard to a specific borrowing, and business -type enterprise funds are now being considered together with general fund revenues and balances in the determination of financial performance. Under the new methodology, there are two metrics that contribute to financial performance. Available Fund Balance Ratio ("AFBR") = (Available Fund Balance + Net Current Assets/Revenue) and Liquidity Ratio ("LR") = (Unrestricted Cash/Revenue). For Aa credits, AFBR ranges from 25-35, and LR ranges from 30-40%. The City was evaluated by Moody's under the old methodology in May of 2022 in connection to its annual issuance of bonds. At that time, Moody's calculated the City's AFBR to be 45.2%, and its LR to be 59.8%. The balances used in these calculations were likely elevated due to unspent ARPA funds. The change in methodology will now consider revenues and net assets from business -type activities in these calculations. As such, the City's general obligation rating will now be directly impacted by the financial performance of enterprise funds. Establishing rates and charges adequate to provide both debt service coverage and significant liquidity will be necessary to maintain the City's ratings. c. In May 2021, Moody's Investor Service upgraded the City's Water Enterprise's outstanding revenue bonds from Al to A2 and affirmed the Aa3 credit rating on general obligation bonds. Notable credit factors include a sizable tax base, a wealth and income profile that is slightly below similarly rated peers, and increased financial position that will decline in fiscal years 2021 and 2022 and somewhat elevated debt and pension liabilities. 9. Fiscal Year 2024 Debt 100% 9a 75% 50% 25% a. FY 2024 Debt Limit: The FY 2022 assessable value of the community for calculating the statutory debt limit is $5,254,447,903, which at 5%, indicates a total General Obligation debt capacity of $262,722,395. Based on Outstanding G.O. debt (including tax increment debt, remaining payments on economic development TIF rebates, and general fund lease agreement) on June 30, 2024, will be $106,837,518 (40.67% of the statutory debt limit) leaving an available debt capacity of $155,884,878 (59.33%). In FY 2023 the City was at 39.36% of statutory debt limit, so 40.67% in FY 2024 is a 3.32% increase in use of the statutory debt limit. It should be noted that most of the City of Dubuque's outstanding debt is not paid for with property taxes (except TIF) but is abated from other revenues. Exceptions include one issuance for the replacement of a Fire Pumper truck in the amount of $1,410,000 with debt service of $81,400 in FY 2024 and one issuance for the franchise fee litigation settlement in the amount of $2,800,000 with debt service of $140,000 in FY 2024. Included in the debt is $3,586,760 of property tax rebates to businesses creating and retaining jobs and investing in their businesses. FY24 Statutory Debt Limit Used (as of June 30th) T1 -n n m m TI TI mn TI n -n TI -n n TI -n n n TI j s j j -L N N N N N N N N N N W W W W L" M V 00 t0 O j N W 4h� M C9 -4 00 0 O N W # FYU Adopted f FY24 Adopted The City also has debt that is not subject to the statutory debt limit. This debt includes revenue bonds. Outstanding revenue bonds payable by water, sewer and stormwater fees on June 30, 2024 will have a balance of $131,993,897. The total City indebtedness as of June 30, 2024, is projected to be $254,734,006. The total City indebtedness as of June 30, 2023, was $251,928,124. In FY 2024, the City will have a projected $2,805,882 or 1.26% more in debt. The City is using debt to accomplish necessary projects. 9 The following chart shows Dubuque's relative position pertaining to use of the statutory debt limit for Fiscal Year 2023 compared to the other cities in Iowa for Fiscal Year 2023 with a population over 50,000: Rank City Legal Debt Limit (5%) Statutory Debt Outstanding Percentage of Legal Debt Limit Utilized 11 Des Moines $ 792,697,654 .$ 529,035,000 66.74 % 10 W. Des Moines $ 506.339.850 $ 319.175.000 63.04 % 9 Cedar Rapids 652,295,825 366,140,000 56.13 ° 8 Waterloo $ 216.437.019 $ 115.999.161 53.59 ° 7 Davenport $ 409,777,672 $ 208,650,000 50.92 % 6 Sioux City $ 293,887,647 $ 143,694,902 48.89 % 5 Dubu ue FY25 262,722,395 106,837,518 40.67 % 4 Ankenv $ 395.854.796 $ 104.450.000 26.39 % 3 Ames 275,808,881 65,175,000 23.63 % 2 1 Iowa City 362,19,812 63,795,000 17.60 ° 1 Council Bluffs $ 321.835.908 $ 50.776.645 1 15.78 Average w/o Dubuque $ 422,735,506 $ 196,689,0711 42.27 Percent of Legal Debt Limit Utilized 80% 60% 40% 23.63% 26 20% 7.60% 0% G 66.74% 42.r49% 50.92% 8, GN O 4e P 10 $324 $297 $270 $243 O $216 $189 $162 $135 Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities in Iowa with a population over 50,000 and Dubuque is below the average of the other Cities. FY24 Total Debt (In Millions) 3 2.3 2 5.5 $25.7 $22.0 25.6 $29.9 $27.4 $25. $22.1 $2 4.5 $2 0. $2 1.9 $2 4.7 6.8 $2 4.3 $2 1.4 2.9 LIED[ D _]EIL111EILE]EEIL ILILILILIELIELILIFILIELI $1T.0 LII- $1 i FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY16 Adopted --JV FY24 Adopted By the end of the Fiscal Year 2024 5-Year Capital Improvement Program (CIP) budget the total amount of debt for the City of Dubuque would be $236.8 million (30.12% of the statutory debt limit) and the projection is to be at $155.9 million (18.76% of statutory debt limit) within 10 years. 10. General Fund Reserve The City maintains a general fund reserve, or working balance, to allow for unforeseen expenses that may occur. Moody's Investor Service recommends a 30% General Fund Operating Reserve for "AX rated cities. In July 2023, Moody's Investor Service upgraded the City's outstanding general obligation bonds from Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to Al. Notable credit factors include strong financial operations and ample revenue -raising flexibility, which has resulted in steadily improved available fund balance and cash. The City serves as a regional economic center and its regional economic growth rate has outpaced the nation over the past five years. These credit ratings are affirmation of the sound fiscal management of the mayor and city council, put Dubuque in a strong position to capitalize on favorable financial markets, borrow at low interest rate when necessary, and make critical investments in the community. 11 Fiscal Year ReserveFund (As percent of General • ••• Calculation Increase due to capital projects not expended before the end FY 2018 23.81 % of the FY and additional contributions to general fund reserve Increase due to capital projects not expended before the end A FY 2019 29.06% of the FY. -4 Increase due to freezing vacant positions and most capital FY 2020 31.24% projects due to the pandemic. Increase due to American Rescue Plan Act funds received ($13.2 million), frozen positions and capital projects through FY 2021 40.72% Feb 2021. Increase due to American Rescue Plan Act funds received million), frozen positions and capital projects through Feb FY 2022 49.16% 45.09% 2021.3.2 Increase due to American Rescue Plan Act funds not spent million), frozen positions and capital projects through Feb FY 2023 50.18% 45.25% 2021. 55 50 45 0 40 a� 35 2 30 m a- 25 20 15 10 Fund Reserve as a Percent of General Fund and Enterprise Fund Revenue New Moody's Methodology FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 FY28 FY29 Fiscal Year The City of Dubuque has historically adopted a general fund reserve policy as part of the Fiscal and Budget Policy Guidelines which is adopted each year as part of the budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve Policy which states the City may continue to add to the General Fund minimum balance of 10% when additional funds are available until 20% of Net General Fund Operating Cost is reached. During Fiscal Year 2024, the General Fund minimum balance was increased to 25 percent. 12 After all planned expenditures in FY 2024, the City of Dubuque will have a general fund reserve of 41.97% of general fund revenues as a percent of general fund revenues computed by the accrual basis or 40.21 % of general fund, debt service, and enterprise fund revenues as computed by the accrual basis methodology now used by Moody's Investors Service. The general fund reserve cash balance is projected to be $19,981,754 on June 30, 2024 as compared to the general fund reserve balance on an accrual basis of $29,659,518. The general fund reserve balance on an accrual basis exceeds 27% in FY 2024, which is the margin of error used to ensure the City always has a general fund reserve of at least 25% as computed by Moody's Investors Service. In Fiscal Year 2017, the City had projected reaching this consistent and sustainable 20% reserve level in Fiscal Year 2022. In fact, the City met the 20% reserve requirement in FY 2017, five years ahead of schedule and has sustained a greater than 20% reserve. General Fund Reserve Projections: FY2017 $600 000 $14 172 661 20.09 % FY2018 $1 700 000 $16 460 491 23.81 % FY2019 $1,050,000 $20,945,090 29.06 % I 1 FY2020 $ $21 744 160 31.24 % FY2021 $ $31 089 468 40.72 % FY2022 41 259 518 49.16 % 45.09 % FY2023 35 459 518 50.18 % 45.25 % FY2024 $ $29,659,518 41.97 % 40.21 % FY2025 $ $23 859 518 33.76 % 35.17 % FY2026 $18,059,518 25.56 % 30.14 % FY2027 $ $18,059,518 25.56 % 30.14 % FY2028 $ $18,059,518 25.56 % 30.14 % FY2029 $ $18,059,518 25.56 % 30.14 % 11. The Municipal Fire and Police Retirement System of Iowa Board of Trustees City contribution for Police and Fire retirement decreased from 22.98% percent in FY 2024 to 22.66% percent in FY 2025 (general fund savings of $34,052 for Police and $28,547 for Fire or a total of $62,599). 12. The already approved collective bargaining agreements for Teamsters Local Union No. 120 Bus Operators and Teamsters Local Union No. 120 in FY 2025 include a 3.00% employee wage increase. A 5.00% wage increase is recommended for Dubuque Police Protective Association. The Dubuque Professional Fire Fighters Association and International Union of Operating Engineers are in contract negotiations. Non -represented employees include a 5.00% wage increase. Total cost of the estimated wage increase is $1,942,693 to the General Fund. 13. The City portion of health insurance expense is projected to remain unchanged from $1,119 per month per contract to $1,119 per month per contract (based on 13 649 contracts) in FY 2025 (no general fund impact). The City of Dubuque is self - insured, and actual expenses are paid each year with the City only having stop - loss coverage for major claims. In FY 2017, The City went out for bid for third party administrator and the estimated savings has resulted from the new contract and actual claims paid with there being actual reductions in cost in FY 2018 (19.42%) and FY 2019 (0.35%). In addition, firefighters began paying an increased employee health care premium sharing from 10% to 15% and there was a 7% increase in the premium on July 1, 2018. During FY 2019, the City went out for bid for third party administrator for the prescription drug plan and Fiscal Year 2022 included additional prescription drug plan savings. There was a decrease of $639,758 in prescription drug cost in FY 2022. Based on FY 2024 actual experience, Fiscal Year 2025 is projected to have a 4.68% increase in health insurance costs. Estimates for FY 2026 increased 4.69%; FY 2027 were increased 4.70%; FY 2028 were increased 4.71 %; and FY 2029 were increased 4.72%. The City portion of health insurance expense is projected to increase 3% in FY 2026; 3% in FY 2027; 3% in FY2028; and 3% in FY 2029. 14. The increase in property tax support for Transit from FY 2024 to FY 2025 is $413,362, which reflects a decrease in Federal Transportation Administration Operating revenue ($12,300); a decrease in Federal Transportation Administration Capital revenue ($27,193), an increase in employee expense ($104,098); increase in supplies and services ($177,641); an increase in equipment replacements ($49,262), a decrease in passenger fare revenue ($50,415). 15. Electrical energy expense is estimated to increase 9.8% over FY 2023 actual expense based on the Alliant Energy interim rate increase. Timeline of Public Input Opportunities The Budget Office conducted community outreach using print and digital marketing and presentations. • September: City staff participated in City Life presentations on the budget process and attendees had the opportunity to prioritize real City projects. • November: The City Manager hosted an evening hybrid public budget input meeting. Participants could attend in person at the City Council Chambers or by phone or computer using GoToMeeting. 14 Open Budget https://dollarsandcents.cityofdubugue.org During Fiscal Year 2016, the City launched a web based open data platform. The City of Dubuque's Open Budget application provides an opportunity for the public to explore and visually interact with Dubuque's operating and capital budgets. This application is in support of the five-year organizational goal of a financially responsible city government and high- performance organization and allows users with and without budget data experience, to better understand expenditures in these categories. Open Expenses URL: http://expenses.citVofdubugue.org/ During Fiscal Year 2017, an additional module was added to the open data platform which included an interactive checkbook which will allow residents to view the City's payments to vendors. The final step will be adding performance measures to the open data platform to allow residents to view outcomes of the services provided by the City. Balancing Act During Fiscal Year 2019, the City of Dubuque launched a new interactive budget simulation tool called Balancing Act. The online simulation invites community members to learn about the City's budget process and submit their own version of a balanced budget under the same constraints faced by City Council, respond to high -priority budget input questions, and leave comments. Taxpayer Receipt During Fiscal Year 2019, the City launched an online application which allows users to generate an estimate of how their tax dollars are spent. The tool uses data inputted by the user such as income, age, taxable value of home, and percentage of goods purchased within City limits. The resulting customized receipt demonstrates an estimate of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other city services. This tool is in support of the City Council goal of a financially responsible and high-performance organization and addresses a Council -identified outcome of providing opportunities for residents to engage in City governance and enhance transparency of City decision -making. There will be seven City Council special meetings prior to the adoption of the FY 2025 budget before the state mandated deadline of April 15, 2024 for cities that have a debt service levy The recommended resolution for Proposed Fiscal Year 2025 Tax Rate and Dollars in FY2025 is $28,223,481 (Tax rate of $9.92638) or a 6.01 % increase over FY2024 property tax dollars. 15 At the March 25, 2024 public hearing, the only options available to City Council are to approve the amount of proposed property tax rate and dollars as is or decrease it. The requested action step is for City Council to adopt the attached resolution setting the public hearing date for the Proposed Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements as required by Section 384.15A of the Code of Iowa. The attached resolution authorizes the City Clerk to publish notification for a public hearing to be held on March 25, 2024. JML Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager 16 FY 2025 Budget & Fiscal Policy Guidelines Page 1 CITY OF DUBUQUE BUDGET & FISCAL POLICY GUIDELINES FISCAL YEAR 2025 FY 2025 Budget & Fiscal Policy Guidelines Page 2 Operating Budget Guidelines The Policy Guidelines are developed and adopted by City Council during the budgeting process to provide targets or parameters within which the budget recommendation will be formulated, in the context of the City Council Goals and Priorities established in August 2023. The final budget presented by the City Manager may not meet all these targets due to changing conditions and updated information during budget preparation. To the extent the recommended budget varies from the guidelines, an explanation will be provided in the printed budget document. By State law, the budget that begins July 1, 2024 must be adopted by April 30, 2024. Though House File 718 extended the budget certification date to April 30, Iowa Code chapter 76, relating to the imposition of debt service tax levies, has not been amended. Since the City of Dubuque has a debt service levy, it must adopt and file the budget with the county before April 15 to be effective for the fiscal year beginning July 1 of the same year. If filed April 15 or after, the taxes will not be imposed until the next successive fiscal year. A. RESIDENT PARTICIPATION GUIDELINt To encourage resident participation in the budget process, City Council will hold seven special meetings in addition to the budget public hearing for the purpose of reviewing the budget recommendations for each City department and requesting public input following each departmental review. The budget will be prepared in such a way as to maximize its understanding by residents. Copies of the recommended budget documents will be accessed via the following: a. The City Clerk's office, located in City Hall (printed) b. The government documents section at the Carnegie Stout Public Library (printed) c. On the City's website at www.cityofdubuque.org/budget (digital) Opportunities are provided for resident input prior to formulation of the City Manager's recommended budget and will be provided again prior to final Council adoption, both at City Council budget special meetings and at the required budget public hearing. Timeline of Public Input Opportunities The Budget Office conducted community outreach using print and digital marketing and presentations. • September: Budget Staff presented at City Life. FY 2025 Budget & Fiscal Policy Guidelines Page 1 November: The City Manager hosted an evening public budget input meeting. Participants could attend in person at the City Council Chambers. Open Budget dollarsandcents.cityofdubuque.org During Fiscal Year 2016, the City launched a web based open data platform. The City of Dubuque's Open Budget application provides an opportunity for the public to explore and visually interact with Dubuque's operating and capital budgets. This application is in support of the five-year organizational goal of a financially responsible city government and high-performance organization and allows users with and without budget data experience, to better understand expenditures in these categories. During Fiscal Year 2017, an additional module was added to the open data platform which included an interactive checkbook which will allow residents to view the City's payments to vendors. The final step will be adding performance measures to the open data platform to allow residents to view outcomes of the services provided by the City. Balancing Act During Fiscal Year 2019, the City of Dubuque launched a new interactive budget simulation tool called Balancing Act. The online simulation invites community members to learn about the City's budget process and submit their own version of a balanced budget under the same constraints faced by City Council, respond to high -priority budget input questions, and leave comments. Taxpayer Receipt During Fiscal Year 2019, the City launched an online application which allows users to generate an estimate of how their tax dollars are spent. The tool uses data inputted by the user such as income, age, taxable value of home, and percentage of goods purchased within City limits. The resulting customized receipt demonstrates an estimate of how much in City taxes the user contributes to Police, Fire, Library, Parks, and other city services. This tool is in support of the City Council goal of a financially responsible and high-performance organization and addresses a Council -identified outcome of providing opportunities for residents to engage in City governance and enhance transparency of City decision -making. B. SERVICE OBJECTIVES AND SERVICE LEVELS GUIDELINE The budget will identify specific objectives to be accomplished during the budget year, July 1 through June 30, for each activity of the City government. The objectives serve as a commitment to the citizens from the City Council and City organization and identify the level of service which the citizen can anticipate. FY 2025 Budget & Fiscal Policy Guidelines Page 2 C. TWO TYPES OF BUDGET DOCUMENTS TO BE PREPARED GUIDELINE 1Two types of budget documents will be prepared for public dissemination. The recommended City operating budget for Fiscal Year 2025 will consist of a Recommended City Council Policy Budget that is a collection of information that has been prepared for department hearings and a Residents Guide to the Recommended FY 2025 Budget. These documents will be available in mid -March. 1. Recommended City Council Policy Budget The purpose of this documents is to focus attention on policy decisions involving what services the City government will provide, who will pay for them, and the implications of such decisions. The document will emphasize objectives, accomplishments and associated costs for the budget being recommended by the City Manager. The Recommended City Council Policy Budget will include the following information for each department: • Highlights of prior year's accomplishments and Future Year's Initiatives • A financial summary • A summary of improvement packages requested and recommended • significant line items • Capital improvement projects in the current year and those recommended over the next five years • Organizational chart for larger departments and major goals, objectives and performance measures for each cost center within that department • Line item expense and revenue financial summaries. 2. The Residents Guide This section of the Recommended FY 2025 Budget will be a supplementary composite of tables, financial summaries and explanations. It will include the operating and capital budget transmittal messages and the adopted City Council Budget Policy Guidelines. Through graphs, charts and tables it presents financial summaries which provide an overview of the total operating and capital budgets. FY 2025 Budget & Fiscal Policy Guidelines Page 3 D. ADOPT A BALANCED BUDGET GUIDELINE The City will adopt a balanced budget in which expenditures will not be allowed to exceed reasonable estimated resources. The City will pay for all current expenditures with current revenues E. BALANCE BETWEEN SERVICES AND TAX BURDEN GUIDELINE The budget should reflect a balance between services provided and the burden of paying taxes and/or fees for those services. It is not possible or desirable for the City to provide all the services requested by individual residents. The City must consider the ability of residents to pay for services in setting service levels and priorities. F. MAINTENANCE EXISTING LEVEL OF SERVICE GUIDELINE To the extent possible with the financial resources available, the City should attempt to maintain the existing level of services. As often as reasonably possible, each service should be tested against the following questions: a. Is this service truly necessary? b. Should the City provide it? c. What level of service should be provided? d. Is there a better, less costly way to provide it? e. What is its priority compared to other services? f. What is the level of demand for the service? g. Should this service be supported by property tax, user fees, or a combination? G. IMPROVE PRODUCTIVITY GUIDELINP Continue efforts to stretch the value of each tax dollar and maximize the level of City services purchased with tax dollars through continual improvements in efficiency and effectiveness. Developing innovative and imaginative approaches for old tasks, reducing duplication of service effort, creative application of new technologies, and more effective organizational arrangements are approaches to this challenge. H. USE OF VOLUNTEERS DISCUSSION To respect residents who must pay taxes, the City must seek to expand resources and supplement service -delivery capacity by continuing to increase direct resident involvement with service delivery. Residents are encouraged to assume tasks previously performed or provided by City government. This may require the City to FY 2025 Budget & Fiscal Policy Guidelines Page 4 change and expand the approach to service delivery by providing organizational skills and training and coordinating staff, office space, meeting space, equipment, supplies and materials rather than directly providing more expensive full-time City staff. Activities in which residents can continue to take an active role include: Airport, Arts & Cultural Affairs, Engineering, Library, Recreation, Parks, Public Works, Five Flags Center, and Police. uuiuELINE Future maintenance of City service levels may depend partially or largely on volunteer resident staffs. Efforts shall continue to identify and implement areas of City government where (a) volunteers can be utilized to supplement City employees to maintain service levels (i.e., Airport, Arts & Cultural Affairs, Engineering, Library, Recreation, Parks, Public Works, Five Flags Center, and Police) or (b) service delivery can be adopted by to non -government groups and sponsors -- usually with some corresponding financial support. I. RESTRICTIONS ON INITIATING NEW SERVICE GUIDELINE New service shall only be considered: (a) when additional revenue or offsetting reduction in expenditures is proposed; or (b) when mandated by state or federal law. J. SALARY INCREASES OVER THE AMOUNT BUDGETED SHALL BE FINANCED FROM BUDGET REDUCTIONS IN THE DEPARTMENT(S) OF THE BENEFITING EMPLOYEES DISCUSSION The recommended budget includes salary amounts for all City employees. However, experience shows that budgeted amounts are often exceeded by fact finder and/or arbitrator awards. Such "neutrals" do not consider the overall financial capabilities and needs of the community and the fact that the budget is carefully balanced and fragile. Such awards have caused overdrawn budgets, deferral of necessary budgeted expenditures, expenditure of working balances and reserves, and have generally reduced the financial condition or health of the City government. To protect the financial integrity of the City government, it is recommended the cost of any salary adjustment over the amount financed in the budget is paid for by reductions in the budget of the department(s) of the benefiting employees. FY 2025 Budget & Fiscal Policy Guidelines Page 5 The City has five collective bargaining agreements. The current contracts expire as follows: .. ininq Unit Teamsters Local Union No. 120 Contract Expires June 30 2025 Teamsters Local Union No. 120 Bus Operators June 30 2025 Dubuque Professional Firefighters Association June 30 2024 Dubuque Police Protective Association June 30 2024 International Union of Operating Engineers June 30 2024 GUIDELINE Salary increases over the amount budgeted for salaries shall be financed from operating budget reductions in the department(s) of the benefiting employees. K. THE AFFORDABLE CARE ACT GUIDELINE The Affordable Care Act is a health care law that aims to improve the current health care system by increasing access to health coverage for Americans and introducing new protections for people who have health insurance. The Affordable Care Act (ACA) was signed into law on March 23, 2010. Under the ACA, employers with more than 50 full- time equivalent employees must provide affordable "minimum essential coverage" to full-time equivalent employees. The definition of a full-time equivalent employee under the Affordable Care Act is any employee that works 30 hours per week or more on average over a twelve-month period (1,660 hours or more). There is a twelve-month monitoring period for part-time employees. If a part-time employee meets or exceeds 30 hours per week on average during that twelve-month period, the City must provide health insurance. On July 2, 2013, the Treasury Department announced that it postponed the employer shared responsibility mandate for one year. Based on the initial requirements of the Affordable Health Care Act, the Fiscal Year 2014 budget provided for insurance coverage effective February 1, 2014 for several part-time employees. In addition, the Fiscal Year 2014 budget provided for making several part- time positions full-time on June 1, 2014. Due to the delay of the employer shared responsibility mandate for the Affordable Health Care Act, the City delayed providing insurance coverage for eligible part-time employees and delayed making eligible part- time positions full-time until January 1, 2015.The Standard Measurement Period was delayed from January 1, 2013 through December 31, 2013 to December 1, 2013 through November 30, 2014 with the first provision of health insurance date being January 1, 2015. The impact of the Affordable Care Act on the City of Dubuque included changing nine part-time positions to full-time (Bus Operators (4), Police Clerk Typist (1), Building Services Custodians (3), and Finance Cashier (1) in Fiscal Year 2016. In addition, nine part-time positions were offered health insurance benefits due to working more than1,560 hours (Bus Operators (4), Golf Professional, Assistant Golf Professional, Golf Maintenance Worker, Parks Maintenance Worker, and Water Meter Service Worker). FY 2025 Budget & Fiscal Policy Guidelines Page 6 The number of these part-time positions with health insurance benefits has been reduced as employees in these positions accept other positions or leave employment with the City of Dubuque. As of February 28, 2024, there is one part-time position with health insurance benefits that remains which includes the Golf Professional. FY 2025 Budget & Fiscal Policy Guidelines Page 7 L. BALANCE BETWEEN CAPITAL AND OPERATING EXPENSES GUIDELINE The provision of City services in the most economical and effective manner requires a balance between capital (with emphasis upon replacement of equipment and capital projects involving maintenance and reconstruction) and operating expenditures. This balance should be reflected in the budget each year. M. USER CHARGES DISCUSSION User charges or fees represent a significant portion of the income generated to support the operating budget. It is the policy that user charges or fees be established when possible so those who benefit from a service or activity also help pay for it. Municipal utility funds have been established for certain activities, which are intended to be self- supporting Enterprise Funds. Examples of utility funds operating as Enterprise Funds include Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund. In other cases, a user charge is established after the City Council determines the extent to which an activity must be self-supporting. Examples of this arrangement are fees for swimming, golf, recreation programs, and certain inspection programs such as rental inspections and building permits. The Stormwater User Fund is fully funded by stormwater use fees. The General Fund will continue to provide funding for the stormwater fee subsidies which provide a 50% subsidy for the stormwater fee charged to property tax exempt properties and low -to - moderate income residents and a 75% subsidy for residential farms. The General Fund will also continue to provide funding for the refuse, water, and sanitary sewer fee subsidies which provide a 50% subsidy for the fees charged to low -to -moderate income residents. GUIDELINE User fees and charges should be established where possible so that those who utilize or directly benefit from a service, activity or facility also help pay for it. User fees and charges for each utility enterprise fund (Water User Fund, Sewer User Fund, Stormwater User Fund, Refuse Collection Fund, and Parking Fund) shall be set at a level that fully supports the total direct and indirect cost of the activity, including the cost of annual depreciation of capital assets, the administrative overhead to support the system and financing for future capital improvement projects. FY 2025 Budget & Fiscal Policy Guidelines Page 8 Ad Activity FY 2022 Actual FY 2023 Actual FY 2024 Adopted FY 2025 Rec'd Adult Athletics 68.8% 70.7% 53.3% 61.1 % McAleece Concessions 119.6% 118.7% 116.4% 119.3% Youth Sports 20.2% 13.3% 15.2% 15.4% Therapeutic & After School 76.0% 80.2% 22.2% 18.2% Recreation Classes 76.0% 65.2% 50.1 % 50.8% Swimming 36.9% 43.6% 41.5% 44.6% Golf 112.5% 108.2% 102.7% 98.2% Port of Dubuque Marina 89.4% 86.4% 65.3% 79.6% Park Division 21.3% 16.8% 15.0% 15.2% Library 1.4% 1.2% 1.3% 1.1 % Airport 101.1 % 100.0% 93.5% 98.3% Building Inspections 156.6% 124.4% 100.5% 92.1% Planning Services 53.7% 50.5% 60.8% 71.2% Health Food/Environmental Inspections 71.8% 63.3% 39.4% 37.1 % Animal Control 69.8% 68.3% 56.7% 53.9% Housing - General Inspection 71.0% 69.5% 93.9% 108.4% Federal Building Maintenance 70.5% 69.8% 58.9% 67.5% N. ADMINISTRATIVE OVERHEAD RECHARGES DISCUSSIC While the Enterprise Funds have contributed to administrative overhead, the majority has been provided by the General Fund. This is not reasonable and unduly impacts property taxes, which causes a subsidy to the Enterprise Funds. Prior to FY 2013, the administrative overhead was charged by computing the operating expense budget for each enterprise fund and dividing the result by the total City-wide operating expense budget which resulted in the following percentages of administrative overhead charged to each enterprise fund: Water 5.32%; Sanitary Sewer 4.84%; Stormwater 0.55%; Solid Waste 2.83%; Parking 1.71 %; and Landfill 2.71 %. The adopted Fiscal Year 2013 budget changed the administrative overhead to be more evenly split between the general fund and enterprise funds and is phased in over many years. The Fiscal Year 2018 administrative overhead formula was recommended modified. The modification removed Neighborhood Development, Economic Development and Workforce Development from all recharges to utility funds. In addition, the Landfill calculation is modified to remove GIS and Planning. In Fiscal Year 2025, the general fund is recommended to support $8,620,018 in administrative overhead using the recharge method adopted in Fiscal Year 2013 and revised in Fiscal Year 2018. FY 2025 Budget & Fiscal Policy Guidelines Page 9 GUIDELINE Beginning in FY 2013, additional overhead recharges to the utility funds is being phased in over several years. Engineering administrative and project management expenses that are not recharged to capital projects will be split evenly between the Water, Sewer, Stormwater and General Funds. Finance accounting expenses and all other administrative departments such as Planning, City Clerk, Legal Services and City Manager's Office will be split evenly between Water, Sewer, Stormwater, Refuse Collection and General Funds, with overhead costs being shared by the Landfill and Parking. This will be fully implemented over time. Beginning in Fiscal Year 2018, Neighborhood Development, Economic Development and Workforce Development expenses will not be recharged to utility funds. In addition, the Landfill will not be recharged GIS and Planning expenses. When the overhead recharges are fully implemented, the split of the cost of administrative overhead excluding Engineering will be as follows: Administrative Overhead Split (Hof including Engineering) 14.6i°Jb ■ Wafer ■ Sewer Stormwaier ■ Refuse ■ Parkin g ■ Landfill ■ General Fund Engineering Administration & Project Management ■ Genera I Fund ■ Wafer Sewer ■ Stormwaier FY 2025 Budget & Fiscal Policy Guidelines Page 10 The implementation percent of the administrative overhead recharges in Fiscal Year 2024 as compared to Fiscal Year 2025 is as follows: Percent Implemented Administrative Overhead 100% ° 97% 99% 100% 100% 100% 100% 100% I 96 /o - ■ ■ 75% 67% 57% 50% 39% 29% 25% ■ FY25 FY24 Sanitary Sewer Stormwater Water Refuse Parking Landfill O. OUTSIDE FUNDING DISCUSSION The purpose of this guideline is to establish the policy that the City should aggressively pursue outside funding to assist in financing its operating and capital budgets. However, the long-term commitments required for such funding must be carefully evaluated before any agreements are made. Commitments to assume an ongoing increased level of service or level of funding once the outside funding ends must be minimized. GUIDELINE To minimize the property tax burden, the City of Dubuque will make every effort to obtain federal, state and private funding to assist in financing its operating and capital budgets. However, commitments to guarantee a level of service or level of funding after the outside funding ends shall be minimized. Also, any matching funds required for capital grants will be identified. P. GENERAL FUND OPERATING RESERVE (WORKING BALANCE) DISCUSSION An operating reserve or working balance is an amount of cash, which must be carried into a fiscal year to pay operating costs until tax money, or other anticipated revenue FY 2025 Budget & Fiscal Policy Guidelines Page 11 comes in. Without a working balance, there would not be sufficient cash in the fund to meet its obligations and money would have to be borrowed. Working balances are not available for funding a budget; they are required for cash flow (i.e., to be able to pay bills before taxes are collected). Moody's Investor Service recommends a factor of 30 percent for "AX rated cities. In July 2023, Moody's Investor Service upgraded the City's outstanding general obligation bonds from Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to Al. Notable credit factors include strong financial operations and ample revenue -raising flexibility, which has resulted in steadily improved available fund balance and cash. The City serves as a regional economic center and its regional economic growth rate has outpaced the nation over the past five years. In November of 2022, Moody's Investors Service ("Moodys") released a new rating methodology for cities and counties. Two significant changes result from the new methodology; cities are now assigned an issuer rating meant to convey the creditworthiness of the issuer as a whole without regard to a specific borrowing, and business -type enterprise funds are now being considered together with general fund revenues and balances in the determination of financial performance. Under the new methodology, there are two metrics that contribute to financial performance. Available Fund Balance Ratio ("AFBR") = (Available Fund Balance + Net Current Assets/Revenue) and Liquidity Ratio ("LR") = (Unrestricted Cash/Revenue). For Aa credits, AFBR ranges from 25-35, and LR ranges from 30-40%. The City was evaluated by Moody's under the old methodology in May of 2022 in connection to its annual issuance of bonds. At that time, Moody's calculated the City's AFBR to be 45.2%, and its LR to be 59.8%. The balances used in these calculations were likely elevated due to unspent ARPA funds. The change in methodology will now consider revenues and net assets from business -type activities in these calculations. As such, the City's general obligation rating will now be directly impacted by the financial performance of enterprise funds. Establishing rates and charges adequate to provide both debt service coverage and significant liquidity will be necessary to maintain the City's ratings. In May 2021, Moody's Investor Service upgraded the City's Water Enterprise's outstanding revenue bonds from Al to A2 and affirmed the Aa3 credit rating on general obligation bonds. Notable credit factors include a sizable tax base, a wealth and income profile that is slightly below similarly rated peers, and increased financial position that will decline in fiscal years 2021 and 2022 and somewhat elevated debt and pension liabilities. These credit ratings are affirmation of the sound fiscal management of the mayor and city council, put Dubuque in a strong position to capitalize on favorable financial markets, borrow at low interest rate when necessary, and make critical investments in the community. FY 2025 Budget & Fiscal Policy Guidelines Page 12 Fiscal Year Fund Reserve (As % of General ... FY 2014 Fund revenues) 14.87% Calculation FY 2015 14.87% Unchanged Increase due to capital projects not expended before the FY 2016 17.52% end of the FY and increase in general fund revenue Increase due to capital projects not expended before the end of the FY and additional contributions to general FY 2017 20.09% fund reserve Increase due to capital projects not expended before the end of the FY and additional contributions to general FY 2018 23.81 % fund reserve Increase due to capital projects not expended before the FY 2019 29.06% end of the FY. Increase due to freezing vacant positions and most FY 2020 31.24% capital projects due to the pandemic. Increase due to American Rescue Plan Act funds received ($13.2 million), frozen positions and capital FY 2021 40.72% projects through Feb 2021. Increase due to American Rescue Plan Act funds not spent ($13.2 million), capital projects not expended FY 2022 49.16% 45.09 % before the end of the FY, and vacant positions. Increase due to American Rescue Plan Act funds not spent ($13.2 million), capital projects not expended FY 2023 50.18% 1 45.25 % before the end of the FY, and vacant positions. The City of Dubuque has historically adopted a general fund reserve policy as part of the Fiscal and Budget Policy Guidelines which are adopted each year as part of the budget process. During Fiscal Year 2013, the City adopted a formal Fund Reserve Policy. Per the policy for the General Fund, the City will maintain a minimum fund balance of at least 20 percent of the sum of (a) annual operating expenditures not including interfund transfers in the General Fund less (b) the amounts levied in the Trust and Agency fund and the Tort Liability Fund ("Net General Fund Operating Cost"). The City may increase the minimum fund balance by a portion of any operating surplus above the carryover balance of $200,000 that remains in the General Fund at the close of each fiscal year. The City continued to add to the General Fund minimum balance when additional funds were available until 20 percent of Net General Fund Operating Cost was reached in Fiscal Year 2017. During Fiscal Year 2024, the General Fund minimum balance was increased to 25 percent. After all planned expenditures in FY 2024, the City of Dubuque will have a general fund reserve of 41.97% of general fund revenues as a percent of general fund revenues computed by the accrual basis or 40.21 % of general fund, debt service, and enterprise fund revenues as computed by the accrual basis methodology now used by Moody's Investors Service. The general fund reserve cash balance is projected to be $19,981,754 on June 30, 2024 as compared to the general fund reserve balance on an accrual basis of $29,659,518. The general fund reserve balance on an accrual basis FY 2025 Budget & Fiscal Policy Guidelines Page 13 exceeds 27% in FY 2024, which is the margin of error used to ensure the City always has a general fund reserve of at least 25% as computed by Moody's Investors Service. ni jinFl INF The guideline of the City of Dubuque is to maintain a General Fund working balance or operating reserve of 25% (27% to maintain a margin of error of 2%) in FY 2025 and beyond. In Fiscal Year 2017, the City had projected reaching this consistent and sustainable 20% reserve level in Fiscal Year 2023. In fact, the City met the 20% reserve requirement in FY 2017, five years ahead of schedule and has sustained a greater than 20% reserve. General Fund Reserve Projections: FY2017 $600,000 $14,172,661 20.09 % FY2018 $1,700,000 $16,460,491 23.81 FY2019 $1,050,000 $20,945,090 29.06 % FY2020 $ $21,744,160 31.24 % FY2021 $ $31,089,468 40.72 % FY2022 $ $41,259,518 49.16 % 45.09 % FY2023 $ $35,459,518 50.18 % 45.25 % FY2024 $ $29,659,518 41.97 % 40.21 % FY2025 $ $23,859,518 33.76 % 35.17 % FY2026 $ $18,059,518 25.56 % 30.14 % FY2027 $ $18,059,518 25.56 % 30.14 % FY2028 $ $18,059,518 25.56 % 30.14 % FY2029 $ $18,059,518 25.56 % 30.14 % * Capital projects and large equipment purchases that are not completed in the year budgeted will temporarily increase the amount of fund balance remaining at the end of the fiscal year. After resources are allocated to the next fiscal year to complete unfinished capital projects and equipment purchases, any amount of general fund reserve balance over 27% creates resources for additional capital projects or other mid -year expenses. Q. USE OF UNANTICIPATED, UNOBLIGATED, NONRECURRING INCOME DISCUSSION Occasionally, the City receives income that was not anticipated and was not budgeted. Often, this money is non -recurring and reflects a one-time occurrence which generated the unanticipated increase in income. FY 2025 Budget & Fiscal Policy Guidelines Page 14 Non -recurring income generally will not be spent on recurring expenses. This would result in a funding shortfall in the following budget year before even starting budget preparation. However, eligible non -recurring expenditures would include capital improvements and equipment purchases. GUIDELINE Nonrecurring unobligated income shall generally only be spent for nonrecurring expenses. Capital improvement projects and major equipment purchases tend to be nonrecurring expenditures. R. USE OF "UNENCUMBERED FUND BALANCES" DISCUSSION' Historically, 100% of a budget is not spent by the end of the fiscal year and a small unencumbered balance remains on June 30th. In addition, income sometimes exceeds revenue estimates or there are cost savings resulting in some unanticipated balances at the end of the year. These amounts of unobligated, year-end balances are "carried over" into the new fiscal year to help finance it. The FY 2024 General Fund budget, which went into effect July 1, 2023, anticipated a "carryover balance" of $200,000 or approximately 2 percent of the General Fund. For multi -year budget planning purposes, these guidelines assume a carryover balance of $200,000 in FY 2025 through FY 2029. GUIDELINE Carryover General Fund balance shall generally be used to help finance the next fiscal year budget and reduce the demand for increased taxation. The available carryover General Fund balance shall be anticipated not to exceed $200,000 for FY 2024 and beyond through the budget planning period. Any amount over that shall usually be programmed in the next budget cycle as part of the capital improvement budgeting process. T. PROPERTY TAX DISCUSSION I. ASSUMPTIONS - RESOURCES 1. Local, Federal and State Resources a. Cash Balance. Unencumbered funds or cash balances of $200,000 will be available in FY 2025 and each succeeding year to support the operating budget. b. Interest Revenue. Interest revenue increased from $1,500,016 in FY 2024 to $1,718,055 in FY 2025. The FY 2025 budget is based on Fiscal Year 2024 year-to-date annualized. FY 2025 Budget & Fiscal Policy Guidelines Page 15 b. Sales Tax Revenue. By resolution, 50% of sales tax funds must be used in the General Fund for property tax relief in FY 2025. Sales tax receipts are projected to increase 3.18% ($398,711) over FY 2024 budget and 3.00% over FY 2024 actual of $12,550,987 based on FY 2024 revised revenue estimate, which included no reconciliation payments from the State of Iowa in this time period, and then an increase at an annual rate of 2.00% percent per year beginning in FY 2026. The following chart shows the past four years of actual sales tax funds and projected FY 2025 for the General Fund: Sales Tax Funds go FY 2021 FY 2022 1&2023 - FY 0in 2025 PY Q4 $ 380,549 $ 419,551 $ 475,037 $ 451,920 $ 465,478 Quarter 1 $ 1,252,896 $ 1,361,526 $ 1,177,196 $ 1,545,777 $ 1,592,150 Quarter 2 $ 1,274,904 $ 1,425,968 $ 1,522,885 $ 1,596,422 $ 1,644,314 Quarter 3 $ 1,072,643 $ 1,211,388 $ 1,443,097 $ 1,515,252 $ 1,560,710 Quarter 4 $ 839,102 $ 950,069 $ 1,110,593 $ 1,166,123 $ 1,201,107 Reconciliation $ 805,052 $ 945,466 $ 371,388 $ — $ — Total $ 5,625,146 $ 6,313,968 1 $ 6,100,196 $ 6,275,494 $ 6,463,759 % Change +18.56% +10.91 % -3.39% +2.87% +3.00% c. Hotel/Motel Tax Revenue. Hotel/motel tax receipts are projected to increase 15.39% ($450,387) over FY 2024 budget and 3.00% over FY 2024 re -estimated receipts of $3,278,041.38, and then increase at an annual rate of 3.00% per year. d. FTA Revenue. Federal Transportation Administration (FTA) transit operating assistance decreased from $570,300 in FY 2024 to $558,000 in FY 2025. The FY 2025 budget is based on the revised FY 2024 budget received from the FTA. Federal operating assistance is based on a comparison of larger cities. Previously the allocation was based on population and population density. e. Ambulance Revenue. Ambulance Ground Emergency Medical Transport Payments increased from $2,324,377 in FY 2024 to $2,401,917 in FY 2025. GEMT is a federally - funded supplement to state Medicaid payments to EMS providers transporting Medicaid patients which began in FY 2023. Fiscal Year 2024 is based on the first four months of FY2023. Fiscal Year 2025 is projected using the 3-year average for both growth rate and actual cost per transport. The call volume projection of 1,256 for FY 2025 is based on a 5% increase from FY 2024 (1,194) based on year-to-date performance. The actual rate of reimbursement for Medicaid increased from $1,596 in FY 2024 to $1,911 in FY 2025 based on the pre -audited cost report for FY 2023. This line item is offset by GEMT Pay to Other Agency expense for local match of $800,631 resulting in net revenue of $1,601,286. Ambulance Fees increased from $1,917,275 in FY 2024 ($349 per call) to $2,074,232 in FY 2025 ($361 per call). FY 2023 actual was 1,717,551. In FY 2025, it is currently estimated that there will be 5,746 calls with $361 per call average. The FY25 ambulance revenue projection is based on the FY24 actual transport volume of 1,795 for the first four months multiplied by 3 to equal 5,385. It is then multiplied by 6.7% to get the 5,746 FY 2025 Budget & Fiscal Policy Guidelines Page 16 projected Fiscal Year 2025 number. The 3-year average for the percentage of growth in transport volume (including the 9.6% for FY24) is 6.7% per year. f. Miscellaneous Revenue. Miscellaneous revenue has been estimated at 2% growth per year over budgeted FY 2024. g. Building Fee Revenue. Building fees (Building Permits, Electrical Permits, Mechanical Permits and Plumbing Permits) are anticipated to decrease $3,175 from $853,817 in FY 2024 to $850,642 in FY 2025. h. DRA Revenue. Gaming revenues generated from lease payments from the Dubuque Racing Association (DRA) are estimated to increase $322,542 from $7,083,037 in FY 2024 to $7,405,579 in FY 2025 based on revised projections from the DRA. This follows a $2,283,319 increase from budget in FY 2023 and a $43,621 increase from budget in FY 2022. The following is a ten-year history of DRA lease payments to the City of Dubuque: Fiscal Year FY 2025 Projected DRA Lease Payments $7,405,579 $ Change $793,713 % Change 12.0% FY 2024 Revised $6,611,866 -$471,171 -6.7% FY 2024 Budget $7,083,037 -$108,438 -1.5% FY 2023 Actual $7,191,475 $583,944 8.8% FY 2022 Actual $6,607,531 $2,645,535 66.8% FY 2021 Actual $3,961,996 -$1,187,192 -23.1 % FY 2020 Actual $5,149,188 $293,177 6.0% FY 2019 Actual $4,856,011 $18,879 0.4% FY 2018 Actual $4,837,132 -$195,083 -3.9% FY 2017 Actual $5,032,215 -$155,297 -3.0% FY 2016 Actual $5,187,512 -$158,104 -3.0% FY 2015 Actual $5,345,616 -$655,577 -10.9% FY 2014 Actual $6,001,193 -$819,090 -12.0% The Diamond Jo payment related to the revised parking agreement increased from $597,905 in FY 2024 to $624,377 in 2025 based on estimated Consumer Price Index adjustment. i. DRA Gaming. The split of gaming revenues from taxes and the DRA lease (not distributions) in FY 2025 remains at a split of 100% operating and 0% capital. When practical in future years, additional revenues will be moved to the capital budget from the operating budget. FY 2025 Budget & Fiscal Policy Guidelines Page 17 The following shows the annual split of gaming taxes and rents between operating and capital budgets from FY2020— FY2025: Split of Gaming Tax + Revenue Between Operating & Capital Budgets FY 2020 95% FY 2021 100% FY 2022 100% FY 2023 100% FY 2024 100% FY 2025 100% —% 10% 20% 30% 40% 50% 60% 70% Operating 0 Capital 80% 90% 100% 110% j. Diamond Jo Revenue. The Diamond Jo Patio lease ($25,000 in FY 2025) and the Diamond Jo parking privileges ($624,377 in FY 2025) have not been included in the split with gaming revenues. This revenue is allocated to the operating budget. 2. Property Taxes k. Residential Rollback. The residential rollback factor will decrease from 54.65% in 2024 to 46.34% or a (15.20)% decrease in FY 2025. The rollback has been estimated to remain the same from Fiscal Years 2026 through 2029. The percent of growth from revaluation is to be the same for agricultural and residential property; therefore, if one of these classes has less than 3% growth for a year, the other class is limited to the same percent of growth. A balance is maintained between the two classes by ensuring that they increase from revaluation at the same rate. In FY 2025, agricultural property had less growth than residential property which caused the rollback factor to decrease. Residential property was revalued by the City Assessor by neighborhood for the January 1, 2023 property assessments, which impacts the Fiscal Year 2025 budget. The average residential property value increased 23.20%. This revaluation of residential property resulted in the taxable value for the average homeowner calculation to increase from $159,503 to $196,508 (+23.20%). FY 2025 Budget & Fiscal Policy Guidelines Page 18 The decrease in the residential rollback factor decreases the value that each residence is taxed on. This decreased taxable value for the average homeowner ($87,169 taxable value in FY 2024 and $91,067 taxable value in 2025) results in more taxes to be paid per $1,000 of assessed value. In an effort to keep property taxes low to the average homeowner, the City calculates the property tax impact to the average residential property based on the residential rollback factor and property tax rate. In a year that the residential rollback factor increases, the City recommends a lower property tax rate than what would be recommended had the rollback factor remained the same. The residential rollback in Fiscal Year 1987 was 75.6481 percent as compared to 46.3428 percent in Fiscal Year 2025. The rollback percent had steadily decreased since FY 1987, which has resulted in less taxable value and an increase in the City's tax rate. However, that trend began reversing in FY 2009 when the rollback reached a low of 44.0803 percent. If the rollback had remained at 75.6481 percent in FY 2024, the City's tax rate would have been $7.04 per $1,000 of assessed value instead of $9.90 in FY 2024. I. State Equalization Order/Property Tax Reform. There was not an equalization order for commercial or industrial property in Fiscal Year 2025. The Iowa Department of Revenue is responsible for "equalizing" assessments every two years. Also, equalization occurs on an assessing jurisdiction basis, not on a statewide basis. Commercial property was revalued by the City Assessor for the January 1, 2023 property assessments, which impacts the Fiscal Year 2025 budget. The average commercial property value increased 25%. This revaluation of commercial property resulted in the taxable value for the average commercial calculation to increase from $432,475 to $540,594 (+25%). Commercial and Industrial taxpayers previously were taxed at 100 percent of assessed value; however due to legislative changes in FY 2013, a 95% rollback factor was applied in FY 2015 and a 90% rollback factor will be applied in FY 2016 and beyond. The State of Iowa backfilled the loss in property tax revenue from the rollback 100% in FY 2015 through FY 2017 and the backfill was capped at the FY 2017 level in FY 2018 and beyond. The FY 2025 State backfill for property tax loss is estimated to be $808,254 for all funds (General Fund, Tort Liability Fund, Trust and Agency Fund, Debt Service Fund, and Tax Increment Financing Funds). Senate File 619 was signed into law by Governor Reynolds on June 16, 2021. The Bill provides that beginning with the FY 2023 payment, the General Fund standing appropriation for commercial and industrial property tax replacement for cities and counties will be phased out in four or seven years, depending on how the tax base of the city or county grew relative to the rest of the state since FY 2014. Cities and counties where the tax base grew at a faster rate than the statewide average from FY 2014 through FY 2021 will have the backfill phased out over a four-year period from FY 2023 to FY 2026, while those that grew at a rate less than the statewide average will have the backfill phased out over a seven-year period from FY 2023 to FY 2029. The City of Dubuque's tax base grew at a rate less than the statewide average and will have FY 2025 Budget & Fiscal Policy Guidelines Page 19 a backfill phase out over a seven year period from FY 2023 to FY 2029. Beginning in FY 2023, the backfill will be eliminated over a eight year period. The projected reduction of State backfill revenue to only the general fund is as follows: Fiscal Year 2025 State Backfill Reduction -$113,840 2026 -$113,840 2027 -$113,840 2028 -$113,840 2029 -$113,840 Total -$569,200 Business Property Tax Credit Law Changes and Implementation of Two -Tier Assessment Limitations From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the property taxes owed and the credit was funded by the State of Iowa. The average commercial and industrial properties ($540,594 Commercial / $632,952 Industrial) received a Business Property Tax Credit from the State of Iowa for the City share of their property taxes of $148 in FY 2015, $693 in FY 2016, $982 in FY 2017, $959 in FY 2018, $843 in FY 2019, $861 in FY 2020, $779 in FY 2021, $780 in FY 2022, and $722 in FY 2023. House File 2552, Division 11 passed in the 2022 legislative session and signed by the Governor on May 2, 2022 repeals the Business Property Tax Credit (BPTC). In lieu of the BPTC, beginning with assessment year 2022, all commercial, industrial, and railroad properties will receive a property assessment limitation on the first $150,000 of value of the property unit equal to the assessment limitation for residential property. The value of the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it has in the past. The $125 million fund will continue to be appropriated each year for reimbursements to counties. County auditors will file a claim for the first tier of the assessment limitations in September. Assessors will continue to provide the unit configuration for auditors as these definitions remained the same. Taxpayers are not required to file an application to receive the first $150,000 of assessed value at the residential assessment limitation rate. If the total for all claims is more than the appropriated amounts, the claims will be prorated and the Iowa Department of Revenue will notify the county auditors of prorated percentage by September 301". Lawmakers believe the new standing general fund will exceed the projected level of claims for fiscal years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement claims will begin being prorated. FY 2025 Budget & Fiscal Policy Guidelines Page 20 The projected backfill for Dubuque for the two-tier assessment limitation in Fiscal Year 2025 is estimated to be $576,898. m. Multi -Residential Property Class/Eliminated State Shared Revenue. Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax classification for rental properties called multi -residential, which requires a rollback, or assessment limitations order, on multi -residential property which will eventually equal the residential rollback. Multi -residential property includes apartments with 3 or more units. Rental properties of 2 units were already classified as residential property. The State of Iowa did not backfill property tax loss from the rollback on multi -residential property. The rollback occurred as follows: Fiscal Year FY 2017 Rollback ', 86.25% Annual Loss of Tax Revenue $331,239 FY 2018 82.50% $472,127 FY 2019 78.75% $576,503 FY 2020 75.00% $691,640 FY 2021 71.25% $952,888 FY 2022 67.50% $752,366 FY 2023 63.75% $662,821 FY 2024 54.65% Total $1,186,077 $5,625,661 This annual loss in tax revenue of $1,186,077 from multi -residential property was not backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the City lost $5,625,661 in total, meaning landlords paid that much less in property taxes. The state did not require landlords to charge lower rents or to make additional investment in their property. In Fiscal Year 2024, the multi -residential property class was eliminated and is reported with the residential property class going forward. State Shared Revenue Eliminations In addition, the State of Iowa eliminated the: a. Machinery and Equipment Tax Replacement in FY 2003 (-$200,000) b. Personal Property Tax Replacement in FY 2004 (-$350,000) c. Municipal Assistance in FY 2004 (-$300,000) d. Liquor Sales Revenue in FY 2004 (-$250,000) e. Bank Franchise Tax in FY 2005 (-$145,000) f. Alcohol License Revenue in FY 2023 (-$85,000) FY 2025 Budget & Fiscal Policy Guidelines Page 21 The combination of the decreased residential rollback, State funding cuts and increased expenses has forced the City's tax rate to increase since 1987 when the residents passed a referendum to establish a one percent local option sales tax with 50% of the revenue going to property tax relief. n. Taxable Value. FY 2025 will reflect the following impacts of taxable values of various property types: Property Type Percent Residential Includes Multi -Residential Change in Taxable Value +5.29 % Commercial +25.87 % Industrial +6.79 % Overall +5.71 % *Overall taxable value increased 5.71 % percent after deducting Tax Increment Financing values Assessed valuations were increased 2 percent per year beyond FY 2025. o. Riverfront Property Lease Revenue. Riverfront property lease revenue is projected to increase by $212,448 in FY 2025 to $4,110,287 due to the estimated consumer price index increase. 3. Fees, Tax Rates & Services p. Franchise Fees. Natural Gas franchise fees have been projected to increase three percent over FY 2023 actual of $1,921,498. Also, Electric franchise fees are based on FY 2023 Actual of $1,921,498 plus 9.8% based on Alliant Energy's interim rate increase. The franchise fee revenues are projected to increase 4% from FY 2026 through FY 2029. The City provides franchise fee rebates to gas and electric customers who are exempt from State of Iowa sales tax. Franchise fee rebates are provided at the same exemption percent as the State of Iowa sales tax exemption indicated on the individual gas and or electric bill. To receive a franchise fee rebate, a rebate request form must be completed by the customer, the gas and/or electric bill must be attached, and requests for rebates for franchise fees must be submitted during the fiscal year in which the franchise fees were paid except for June. Natural Gas franchise fee rebates have been projected to increase 29% over 2024 budget of $78,500 and Electric franchise fee rebates have been projected to increase 45.24% over 2024 budget of $581,855. The franchise fee charged on gas and electric bills increased from 3% to 5%, the legal maximum, on June 1, 2015. q. Property Tax Rate. For purposes of budget projections only, it is assumed that City property taxes will continue to increase at a rate necessary to meet additional requirements over resources beyond FY 2025. FY 2025 Budget & Fiscal Policy Guidelines Page 22 r. Police & Fire Protection. FY 2025 reflects the thirteenth year that payment in lieu of taxes is charged to the Water and Sanitary Sewer funds for Police and Fire Protection. In FY 2025, the Sanitary Sewer fund is charged 0.43% of building value and the Water fund is charged 0.62% of building value, for payment in lieu of taxes for Police and Fire Protection. This revenue is reflected in the General Fund and is used for general property tax relief. ii. AbbUivir i iONS — REQUIREMENTS a. Pension Systems. • The Municipal Fire and Police Retirement System of Iowa (MFPRSI) Board of Trustees City contribution for Police and Fire retirement decreased from 22.98% percent in FY 2024 to 22.66% percent in FY 2025 (general fund savings of $34,052 for Police and 28,547 for Fire or a total of $62,599). The Iowa Public Employee Retirement System (IPERS) City contribution is unchanged from the FY 2024 contribution rate of 9.44% (no general fund impact). The IPERS employee contribution is unchanged from the FY 2024 contribution rate of 6.29% (which does not affect the City's portion of the budget). The IPERS rate is anticipated to increase 1 percent each succeeding year. b. Collective Bargaining. The already approved collective bargaining agreements for Teamsters Local Union No. 120 Bus Operators and Teamsters Local Union No. 120 in FY 2025 include a 3.00% employee wage increase. A 5.00% wage increase is recommended for Dubuque Police Protective Association. The Dubuque Professional Fire Fighters Association and International Union of Operating Engineers are in contract negotiations. Non -represented employees include a 5.00% wage increase. Total cost of the estimated wage increase is $1,942,693 to the General Fund. c. Health Insurance. The City portion of health insurance expense is projected to remain unchanged from $1,119 per month per contract to $1,119 per month per contract (based on 649 contracts) in FY 2025 (no general fund impact). The City of Dubuque is self -insured, and actual expenses are paid each year with the City only having stop -loss coverage for major claims. In FY 2017, The City went out for bid for third party administrator and the estimated savings has resulted from the new contract and actual claims paid with there being actual reductions in cost in FY 2018 (19.42%) and FY 2019 (0.35%). In addition, firefighters began paying an increased employee health care premium sharing from 10% to 15% and there was a 7% increase in the premium on July 1, 2018. During FY 2019, the City went out for bid for third party administrator for the prescription drug plan and Fiscal Year 2022 included additional prescription drug plan savings.There was a decrease of $639,758 in prescription drug cost in FY 2022. Based on FY 2024 actual experience, Fiscal Year 2025 is projected to have a 4.68% increase in health insurance costs. Estimates for FY 2026 were increased 4.69%; FY 2027 were increased 4.70%; FY 2028 were increased 4.71 %; and FY 2029 were increased 4.72%. The City portion of health insurance expense is projected to increase 3% in FY 2026; 3% in FY 2027; 3% in FY2028; and 3% in FY 2029. FY 2025 Budget & Fiscal Policy Guidelines Page 23 d. Five -Year Retiree Sick Leave Payout. FY 2013 was the first year that eligible retirees with at least twenty years of continuous service in a full-time position or employees who retired as a result of a disability and are eligible for pension payments from the pension system can receive payment of their sick leave balance with a maximum payment of 120 sick days, payable bi-weekly over a five-year period. The sick leave payout expense budget in the General Fund in FY 2024 was $290,242 as compared to FY 2025 of $283,061, based on qualifying employees officially giving notice of retirement. e. 50% Sick Leave Payout. Effective July 1, 2019, employees over the sick leave cap can convert 50% of the sick leave over the cap to vacation or be paid out. The 50% sick leave payout expense budget in the General Fund in FY 2024 was $119,167 as compared to FY 2025 of $124,908, based on FY 2023 actual with an increase of 5%. f. Parental Leave. Effective March 8, 2019, employees may use Parental leave to take paid time away from work for the birth or the adoption of a child under 18 years old. Eligible employees receive their regular base pay (plus longevity) and benefits for twelve weeks following the date of birth, adoption event or foster -to -adopt placement. If both parents are eligible employees, each receive the leave benefit. There is no parental leave expense budgeted in the General Fund based on departments covering parental leave with existing employees and not incurring additional cost for temporary help. f. Supplies & Services. General operating supplies and services are estimated to increase 2% over actual in FY 2023. A 2% increase is estimated in succeeding years. g. Electricity. Electrical energy expense is estimated to increase 9.8% over FY 2023 actual expense based on the Alliant Energy interim rate increase, then 2% per year beyond. h. Natural Gas. Natural gas expense is estimated to have no increase over FY 2023 actual then 2% per year beyond. i. Travel Dubuque. The Dubuque Area Convention and Visitors Bureau contract will continue at 50% of actual hotel/motel tax receipts. j. Equipment & Machinery. Equipment costs for FY 2025 are estimated to increase 18.85% over FY 2024 budget, then remain constant per year beyond. k. Debt Service. Debt service is estimated based on the tax -supported, unabated General Obligation bond sale for fire truck and franchise fee litigation settlement. I. Unemployment. Unemployment expense in the General Fund increased from $27,653 in FY 2024 to $33,922 in FY 2025 based on estimated premium for FY 2025. m. Motor Vehicle Fuel. Motor vehicle fuel is estimated to decrease 9.33% under the FY 2024 budget, then increase 2.0% per year beyond. FY 2025 Budget & Fiscal Policy Guidelines Page 24 n. Motor Vehicle Maintenance. Motor vehicle maintenance is estimated to increase 5% from the FY 2024 budget, then increase 2.0% per year and beyond. o. Public Transit. The increase in property tax support for Transit from FY 2024 to FY 2025 is $413,362, which reflects a decrease in Federal Transportation Administration Operating revenue ($12,300); a decrease in Federal Transportation Administration Capital revenue ($27,193), an increase in employee expense ($104,098); increase in supplies and services ($177,641); an increase in equipment replacements ($49,262), a decrease in passenger fare revenue ($50,415). p. Public Transit (continued): The following is a ten-year history of the Transit subsidy: Fiscal Year FY25 Projected Amount $1,961,488 % Change 26.70 % FY 2024 Budget $1,548,127 1.52 % FY 2023 Actual $1,571,981 1.83 % FY 2022 Actual $1,601,290 2.09 % FY 2021 Actual $1,635,441 4.94 % FY 2020 Actual $1,558,460 0.82 % FY 2019 Actual $1,571,307 0.10 % FY 2018 Actual $1,572,825 34.10 % FY 2017 Actual $1,172,885 24.41 % FY 2016 Actual $942,752 13.20 % FY 2015 Actual $1,086,080 30.33 % FY 2014 Actual $833,302 20.19 % q. Shipping & Postage. Postage rates for FY 2025 are based on FY 2023 actual expense. A 3.0 percent increase is estimated in succeeding years. r. Insurance. Insurance costs are estimated to change as follows: • Workers Compensation including Excess Workers Compensation for Police and Fire is increasing 16% based on the modification factor and actual payroll. As the City's payroll increases, it directly reflects the cost of workers' compensation coverage. • General Liability is increasing 46.86% based on net city budget increase, total fleet size increase, public officials elected/full time and part time staff increase, significant increase in auto physical damage values, and increased receipts. • Damage claims is decreasing 18% based on a three year average. • Property insurance is increasing 47.96% based on a hard property insurance market. FY 2025 Budget & Fiscal Policy Guidelines Page 25 s. Housing. The Housing Choice Voucher subsidy payment from the General Fund is estimated to decrease $89,031 in FY 2025. The City of Dubuque is authorized to use up to 1,108 vouchers; however, the annual budget provided by the U.S. Department of Housing and Urban Development (HUD) only supports approximately 900 vouchers. The city is utilizing 880 vouchers as of October 2023. HUD has based the Section 8 administrative fees for FY 2025 on the number of vouchers held in FY 2024 which has increased the amount of administrative revenue received by the Section 8 program in FY 2025, however administrative expenses also increased. t. Media Services Fund. The Media Services Fund no longer funds Police and Fire public education, Information Services, Health Services, Building Services, Legal Services, and City Manager's Office due to reduced revenues from the cable franchise. This is due to Mediacom's conversion from a Dubuque franchise to a state franchise in October 2009 which changed the timing and calculation of the franchise fee payments. Effective June 2020, Mediacom will no longer contribute to the Public, Educational, and Governmental Access Cable Grant (PEG) Fund, and after the balance in that fund is expended, the City will be responsible for all City Media Service equipment replacement costs. Other jurisdictions will need to plan accordingly. u. Greater Dubuque Development Corporation. Greater Dubuque Development Corporation support of $836,135 is budgeted to be paid mostly from Dubuque Industrial Center Land Sales in FY 2025, with $26,500 for True North strategy paid from the Greater Downtown TIF. In FY 2026 and beyond Greater Dubuque Development Corporation will be paid from the Greater Downtown TIF and Dubuque Industrial Center West land sales. FY 2025 Budget & Fiscal Policy Guidelines Page 26 4ROPERTY TAX IMPACT The recommended Fiscal Year 2025 property tax rate increased 1.90% and will have the following impact: Historical Impact on Tax Askings and Average Residential Property Tax Rates The following is a historical City tax rate comparison. The average percent change in tax rate from 1987-2025 is-0.94%. The average annual change over the last five years is -0.78%. The following pages show historical and projected property tax impacts. FY 2025 Budget & Fiscal Policy Guidelines Page 27 Historical Impacts on Tax Askings & Average Residential Property Tax Rates: 6.00% 3.00% (3.00)% (6.00)% (9.00)% (12.00)% (15.00)% (18.00)% Historical Impact on Tax Askings & Average Residential Property Tax Rates -W % Change in Tax Rate City Tax Rate $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 ■ ■ ■ ■ ■ ■ ■ ■ 1 . ■ ■ ■ ■ f 1 ■ ■ ■ ■ ■ ■ ■ ' 7 ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ $ Il- 00 O O � N M It Ln (D f-- M M O— N M It Ln (0rl- M O O— N M'IT U-) O r— M O O— N M I LLB M °0 M O M O M O O O O O M O O O O O O O O O O— -- r r N N N N N N M O O D M M M O O M O O O O O O O O O O O O O O O O O O O O O O O O O O O O O LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL The following page shows historical City tax rates and % change in tax rate: FY 2025 Budget & Fiscal Policy Guidelines Page 28 Fiscal Year FY 1987 City Tax Rate 14.5819 % Change in Tax Rate FY 1988 13.9500 -4.33% FY 1989 11.8007 -15.41 % FY 1990 11.6891 -0.95% FY 1991 12.2660 +4.94% FY 1992 12.7741 +4.14% FY 1993 12.4989 -2.15% FY 1994 12.6059 +0.86% FY 1995 11.7821 -6.54% FY 1996 11.7821 0.00% FY 1997 11.3815 -3.40% FY 1998 11.4011 +0.17% FY 1999 11.0734 -2.87% FY 2000 10.7160 -3.23% FY 2001 11.0671 +3.28% FY 2002 10.7608 -2.77% FY 2003 10.2120 -5.10% FY 2004 10.2730 +0.60% FY 2005 10.0720 -1.96% FY 2006 9.6991 -3.70% FY 2007 9.9803 +2.90% FY 2008 10.3169 +3.37% FY 2009 9.9690 -3.37% FY 2010 9.8577 -1.12% FY 2011 10.0274 +1.72% FY 2012 10.4511 +4.23% FY 2013 10.7848 +3.19% FY 2014 11.0259 +2.24% FY 2015 11.0259 0.00% FY 2016 11.0259 0.00% FY 2017 11.1674 +1.28% FY 2018 10.8922 -2.46% FY 2019 10.5884 -2.79% FY 2020 10.3314 -2.43% FY 2021 10.1440 -1.81 % FY 2022 9.8890 -2.51 % FY 2023 9.7169 -1.74% FY 2024 9.9014 +1.90% FY 2025 9.9264 +0.25% 1987 - 2025 Average Change -0.94% 2021-2025 Average Change -0.78% FY 2025 Budget & Fiscal Policy Guidelines Page 29 From Fiscal Year 1987 through Fiscal Year 2025, the average annual change in the property tax rate is a decrease of 0.94%. Over the last five years, the average annual change in the property tax rate is a decrease of 0.78%. Projected Impacts on Tax Askings and Average Residential Property Tax Rates Project Impacts on Tax Askings & Average Residential Property Tax Rates 6.00% $12.00 4.50% 3.00% 1.50% FY 2025 �11 A FY 2026 FY 2027 % Change in Tax Rate Projected City tax rates and % change in tax rate*: $9.00 $6.00 $3.00 FY 2028 FY 2029 City Tax Rate Fiscal Year FY 2025 City Tax Rate 9.9264 - % . in Tax Rate 0.25% FY 2026 10.3115 3.88% FY 2027 10.7659 4.41 % FY 2028 11.2954 4.92% FY 2029 11.8395 4.82% *Significantly impacted by the budget projection that the State of Iowa began eliminating the property tax backfill payments beginning in FY 2023. FY 2025 Budget & Fiscal Policy Guidelines Page 30 IMPACT ON AVERAGE RESIDENTIAL PROPERTY - EXAMPLE - Historical Actual Change if HTC 00% Funded Dollar Change -$58.39 City Tax Calculation $453.99 Percent ChangeActual -11.40% FY 1989 "City" Property Tax FY 1990 "City" Property Tax $449.94 -0.89% -$4.04 FY 1991* "City" Property Tax* $466.92 +3.77% $16.98 FY 1992 "City" Property Tax $483.63 +3.58% $16.71 FY 1993* "City" Property Tax* $508.73 +5.19% $25.10 FY 1994 "City" Property Tax $510.40 +0.33% $1.51 FY 1995* "City" Property Tax* $522.65 +2.40% $12.41 FY 1996 "City" Property Tax $518.10 -0.87% -$4.54 FY 1997* "City" Property Tax* $515.91 -0.42% -$2.19 FY 1998 "City" Property Tax $512.25 -0.71 % -$3.66 FY 1999 "City" Property Tax* $512.25 0.00% $0.00 FY 2000 "City" Property Tax $511.38 -0.17% -$0.87 FY 2001 "City" Property Tax $511.38 0.00% $0.00 FY 2002 "City" Property Tax $511.38 0.00% $0.00 FY 2003 "City" Property Tax* $485.79 -5.00% -$25.58 FY 2004 "City" Property Tax $485.79 0.00% $0.00 With Homestead Ad'. $493.26 +1.54% $7.46 FY 2005 "City" Property Tax* $485.93 +0.03% $0.14 With Homestead Ad'.* $495.21 +0.40% $1.95 FY 2006 "City" Property Tax 1 $494.27 +1.72% $8.34 With Homestead Adj. 1 $504.62 +1.90% $9.41 FY 2007 "City" Property Tax* 2 $485.79 -1.72% -$8.48 With Homestead Adj.* $496.93 -1.52% -$7.69 FY 2008 "City" Property Tax $496.93 0.00% $0.00 With Homestead Ad'. $510.45 +2.72% $13.52 FY 2009 "City" Property Tax $524.53 +2.76% $14.08 With Homestead Ad'. $538.07 +5.41 % $27.62 FY 2010 "City" Property Tax $538.07 0.00% $0.00 With Homestead Adj. $550.97 +2.40% $12.90 FY 2011 "City" Property Tax $564.59 +2.47% $13.62 With Homestead Adj. 3 $582.10 +5.65% $31.13 FY 2012 "City" Property Tax $611.19 +5.00% $29.09 With Homestead Adj. (3) $629.78 +8.19% $47.68 FY 2013 "City" Property Tax $661.25 +5.00% $31.47 With Homestead Adj. (3) $672.76 +6.82% $42.98 FY 2014 "City" Property Tax $705.71 +4.90% $32.95 FY 2025 Budget & Fiscal Policy Guidelines Page 31 -Historical As FY 2015 "City" Property Tax City Tax Calculation $728.48 Actual Percent ChangeActual +3.23% Change if HTC 100% Funded Dollar Change $22.77 FY 2016 "City" Property Tax $747.65 +2.63% +$19.17 FY 2017 "City" Property Tax $755.70 +1.08% $8.05 FY 2018 "City" Property Tax $755.70 0.00% $0.00 FY 2019 "City" Property Tax $770.17 +1.91 % $14.47 FY 2020 "City" Property Tax $770.17 0.00% $0.00 FY 2021 "City" Property Tax $769.08 -0.14% -$1.09 FY 2022 "City" Property Tax $769.08 0.00% $0.00 FY 2023 "City" Property Tax $791.82 +2.96% +$22.74 FY 2024 "City" Property Tax $815.07 +2.94% +$23.25 Average FY1989-FY2024 with Homestead Adj. +1.36% Average FY2020-FY2024 with Homestead Adj. +1.15% Average FY1989-FY2024 without Homestead Adj. +0.85% +$8.41 +$8.98 +$5.67 The average annual dollar change in residential property tax from 1989-2024 is an increase of $8.41. The average annual dollar change over the last five years is an increase of $8.98. Projected impact on average residential property: FY 2025 ROJECTION IWMFCITYTAX "City" Property Tax CALCULATION $855.82 PERCENT +5.00% DOLLAR +$40.75 FY 2026 "City" Property Tax $889.02 +3.88% +$33.20 FY 2027 "City" Property Tax $928.20 +4.41 % +$39.18 FY 2028 "City" Property Tax $973.86 +4.92% +$45.66 FY 2029 "City" Property Tax $1,020.76 +4.82% +$46.90 * Denotes year of State -issued equalization orders. ^ Impact to average homeowner if the State funds the Homestead Property Tax Credit at 62%. (1) The FY 2006 property tax calculation considers the 6.2% valuation increase for the average residential homeowner as determined by the reappraisal. (2) Offsets the impact of the State reduced Homestead Property Tax Credit in FY 2005 & 2006. (3) The City adopted a budget in FY 2011 and 2012 that provided no increase to the average homeowner. The State of Iowa underfunded the Homestead Property Tax Credit in both years costing the average homeowner an additional $18.59 in FY 2012 and $11.51 in FY 2013. This provided no additional revenues to the City, as this money would have come to the City from the State if they appropriated the proper amount of funds. FY 2025 Budget & Fiscal Policy Guidelines Page 32 Homestead Property Tax Credit The Homestead Property Tax Credit was established by the state legislature to reduce the amount of property tax collected. The intent of the credit was to be a form of tax relief and provide an incentive for home ownership. The State Homestead Property Tax Credit works by discounting the tax collected on the first $4,850 of a property's taxable value. This has no impact on what the City receives from property tax collections, but provides tax relief for the average homeowner. Beginning FY 2004, the State of Iowa did not fully fund the State Homestead Property Tax Credit resulting in the average homeowner paying the unfunded portion. Again, this has no impact on what the City receives, however as a result has caused the average homeowner to pay more taxes. Historical Percent of Iowa Homestead Property Tax Credit Funded by the State of Iowa 100% 2003 2004 85% 2005 81% 2006 78% 2007 77% 2008 73% 2009 72% 2010 72% 2011 64% 2012 62% 2013 78% 2014 100% 2015 100% 100% 2016 2017 100% 2018 100% 2019 100% 2020 100% 2021 100% 2022 100% 2023 100% 100% 2024 2025 100% —% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 110% Percent Funded FY 2025 Budget & Fiscal Policy Guidelines Page 33 IMPACT ON COMMERCIAL PROPERTY - EXAMPLE •a $2,106.42 - • - 1 • - -$384.19 -15.43% FY 9989 "City" Property Tax FY 1990 "City" Property Tax $2,086.50 -$19.92 -0.95% FY 1991 "City" Property Tax $2,189.48 +$102.98 +4.94% FY 1992 "City" Property Tax $2,280.18 +$90.70 +4.14% FY 1993 "City" Property Tax $2,231.05 -$49.13 -2.15% FY 1994 "City" Property Tax $2,250.15 +$19.10 +0.86% FY 1995 "City" Property Tax $2,439.60 +$189.45 +8.42% FY 1996 "City" Property Tax $2,439.60 $0.00 0.00% FY 1997 "City" Property Tax $2,659.36 +$219.76 +9.01 % FY 1998 "City" Property Tax $2,738.43 +$79.07 +2.97% FY 1999 "City" Property Tax $2,952.03 +$213.60 +7.80% FY 2000 "City" Property Tax $2,934.21 -$17.82 -0.60% FY 2001 "City" Property Tax $2,993.00 +$58.86 +2.00% FY 2002 "City" Property Tax $2,910.25 -$82.84 -2.76% FY 2003 "City" Property Tax $3,186.27 +$276.03 +9.48% FY 2004 "City" Property Tax $3,278.41 +$92.15 +2.89% FY 2005 "City" Property Tax $3,349.90 +$71.48 +2.18% FY 2006 "City" Property Tax (1) $3,152.52 -$197.38 -5.89% FY 2007 "City" Property Tax $3,538.03 +$385.50 +12.23% FY 2008 "City" Property Tax $3,688.64 +$150.62 +4.26% FY 2009 "City" Property Tax $3,554.71 -$133.94 -3.63% FY 2010 "City" Property Tax $3,524.48 -$30.23 -0.85% FY 2011 "City" Property Tax $3,585.16 +$60.68 +1.72% FY 2012 "City" Property Tax $3,736.64 +$151.48 +4.23% FY 2013 "City" Property Tax $3,855.96 +$119.32 +3.19% FY 2014 "City" Property Tax $3,942.14 +$86.20 +2.23% FY 2015 "City" Property Tax (2) $3,896.93 $147.72 -$45.21 -1.15% FY 2016 "City" Property Tax (3) $3,139.16 $692.62 -$757.77 -19.45% FY 2017 "City" Property Tax (4) $3,364.61 $982.19 +$225.45 +7.18% FY 2018 "City" Property Tax (5) $3,280.44 $959.11 -$84.16 -2.50% FY 2019 "City" Property Tax (6) $3,278.23 $843.08 -$2.21 -0.07% FY 2020 "City" Property Tax (7) $3,160.71 $860.57 -$117.52 -3.58% FY 2021 "City" Property Tax (8) $3,169.30 $779.03 +$8.59 +0.27% FY 2022 "City" Property Tax (9) $3,069.57 $779.50 -$99.73 -3.15% FY 2023 "City" Property Tax (10) $3,060.34 $721.73 -$9.23 -0.30% FY 2024 "City" Property Tax $3,328.86 +$268.52 +8.77% FY 1989-2024 Average Change +$23.29 +1.01% 2020-2024 Average Change 1 +$10.13 +0.40% *Net of Business Property Tax Credit FY 2025 Budget & Fiscal Policy Guidelines Page 34 The average annual dollar change in commercial property taxes from 1989-2024 is a increase of $23.29. The average annual dollar change over the last five years is a increase of +$10.13. Projected impact on average commercial property: PROJECTEDDOLLAR FY 2025 CALCULATION "City" Property Tax PROPERTYCHANGE CREDIT $4,179.49 (111) $0.00 +$850.63 PERCENT +25.55% FY 2026 "City" Property Tax $3,338.25 $0.00 -$841.24 -20.13% FY 2027 "City" Property Tax $3,485.36 $0.00 +$147.11 +4.41 % FY 2028 "City" Property Tax $3,656.79 $0.00 +$171.43 +4.92% FY 2029 I "City" Property Tax 1 $3,832.93 $0.00 +$176.14 +4.82% (1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial property as determined by the reappraisal. (2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015. (3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016. (4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017. (5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018. (6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019. (7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020. (8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021. (9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022. (10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2022. (11)From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the property taxes owed and the credit was funded by the State of Iowa. Beginning in FY 2024, all commercial, industrial, and railroad properties will receive a property assessment limitation on the first $150,000 of value of the property unit equal to the assessment limitation for residential property. The value of the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it has in the past.The $125 million fund will continue to be appropriated each year for reimbursements to counties. County auditors will file a claim for the first tier of the assessment limitations in September. Assessors will continue to provide the unit configuration for auditors as these definitions remained the same. Taxpayers are not required to file an application to receive the first $150,000 of assessed value at the residential assessment limitation rate. Lawmakers believe the new standing general fund will exceed the projected level of claims for fiscal years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement claims will begin being prorated. The projected backfill for Dubuque for the two-tier assessment limitation in Fiscal Year 2024 is estimated to be $587,446. FY 2025 Budget & Fiscal Policy Guidelines Page 35 IMPACT ON INDUSTRIAL PROPERTY - EXAMPLE Ir CITY TAX CALCULATION BUSINESS PROPERTYDOLLAR ACTUAL - O- FY 1989 "City" Property Tax $5,900.35 -$1,074.65 -15.40% FY 1990 "City" Property Tax $5,844.55 -$55.80 -0.95% FY 1991 "City" Property Tax $6,133.00 +$288.45 +4.94% FY 1992 "City" Property Tax $6,387.05 +$254.05 +4.14% FY 1993 "City" Property Tax $6,249.45 -$137.60 -2.15% FY 1994 "City" Property Tax $6,302.95 +$53.50 +0.86% FY 1995 "City" Property Tax $5,891.05 -$411.90 -6.54% FY 1996 "City" Property Tax $5,891.05 $0.00 0.00% FY 1997 "City" Property Tax $5,690.75 -$200.30 -3.40% FY 1998 "City" Property Tax $5,700.56 +$9.81 +0.17% FY 1999 "City" Property Tax $5,536.70 -$163.86 -2.87% FY 2000 "City" Property Tax $5,358.00 -$178.70 -3.23% FY 2001 1 "City" Property Tax $5,533.00 +$175.00 +3.27% FY 2002 "City" Property Tax $5,380.42 -$152.58 -2.76% FY 2003 "City" Property Tax $5,106.00 -$274.42 -5.10% FY 2004 "City" Property Tax $5,136.50 +$30.50 +0.60% FY 2005 "City" Property Tax $5,036.00 -$100.50 -1.96% FY 2006 1 "City" Property Tax (1) $5,814.61 +$778.61 +15.46% FY 2007 "City" Property Tax $5,983.21 +$168.60 +2.90% FY 2008 "City" Property Tax $6,184.95 +$201.74 +3.37% FY 2009 "City" Property Tax $5,976.44 -$208.51 -3.37% FY 2010 "City" Property Tax $5,909.69 -$66.75 -1.12% FY 2011 "City" Property Tax $6,011.44 +$101.75 +1.72% FY 2012 1 "City" Property Tax $6,265.43 +$253.99 +4.23% FY 2013 "City" Property Tax $6,465.48 +$200.05 +3.19% FY 2014 "City" Property Tax $6,610.00 +$144.52 +2.24% FY 2015 "City" Property Tax (2) $6,131.80 $147.72 -$478.20 -7.23% FY 2016 "City" Property Tax (3) $5,256.41 $692.62 -$875.39 -14.28% FY 2017 "City" Property Tax (4) $5,043.36 $982.19 -$213.05 -4.05% FY 2018 1 "City" Property Tax (5) $4,917.78 $959.11 -$125.58 -2.49% FY 2019 "City" Property Tax (6) $4,869.91 $843.08 -$47.87 -0.97% FY 2020 "City" Property Tax (7) $4,713.76 $860.57 -$156.15 -3.21 % FY 2021 "City" Property Tax (8) $4,694.17 $779.03 -$19.59 -0.42% FY 2022 "City" Property Tax (9) $4,556.11 $779.50 -$138.06 -2.94% FY 2023 "City" Property Tax (,o) $4,521.00 $721.73 -$35.11 -0.77% FY 2024 "City" Property Tax $4,817.26 +$296.26 +6.55% FY 1989-2024 Average Change -$59.94 -0.88% 2020-2024 Average Change -$10.53 -0.16% *Net of Business Property Tax Credit FY 2025 Budget & Fiscal Policy Guidelines Page 36 The average annual dollar change in industrial property taxes from 1989-2024 is a decrease of $59.94. The average annual dollar change over the last five years is a decrease of $10.53. Projected impact on average industrial property: PROJECTEDDOLLAR FY 2025 "City" Property Tax CALCULA•PROPERTY CREDIT $5,004.59 TAX (111) $0.00 PERCENT CHANGE +$187.33 CHANGE +3.897/. FY 2026 "City" Property Tax $4,888.30 $0.00 -$116.29 -2.32% FY 2027 "City" Property Tax $5,103.71 $0.00 +$215.41 +4.41 % FY 2028 "City" Property Tax $5,354.74 $0.00 +$251.03 +4.92% FY 2029 1 "City" Property Tax 1 $5,612.67 $0.00 +$257.93 +4.82% (1) The FY 2006 property tax calculation considers the 19.9% valuation increase for industrial property as determined by the reappraisal. (2) The Business Property Tax Credit was $148 and rollback to 95% in FY 2015. (3) The Business Property Tax Credit was $693 and rollback to 90% in FY 2016. (4) The Business Property Tax Credit was $982 and rollback to 90% in FY 2017. (5) The Business Property Tax Credit was $959 and rollback to 90% in FY 2018. (6) The Business Property Tax Credit was $843 and rollback to 90% in FY 2019. (7) The Business Property Tax Credit was $861 and rollback to 90% in FY 2020. (8) The Business Property Tax Credit was $779 and rollback to 90% in FY 2021. (9) The Business Property Tax Credit was $780 and rollback to 90% in FY 2022. (10) The Business Property Tax Credit was $722 and rollback to 90% in FY 2023. (11) From FY 2015 through FY 2023, commercial, industrial and railroad properties were eligible for a Business Property Tax Credit. The Business Property Tax Credit was deducted from the property taxes owed and the credit was funded by the State of Iowa. Beginning in FY 2024, all commercial, industrial, and railroad properties will receive a property assessment limitation on the first $150,000 of value of the property unit equal to the assessment limitation for residential property. The value of the property unit that exceeds $150,000 receives the same ninety percent assessment limitation it has in the past.The $125 million fund will continue to be appropriated each year for reimbursements to counties. County auditors will file a claim for the first tier of the assessment limitations in September. Assessors will continue to provide the unit configuration for auditors as these definitions remained the same. Taxpayers are not required to file an application to receive the first $150,000 of assessed value at the residential assessment limitation rate. Lawmakers believe the new standing general fund will exceed the projected level of claims for fiscal years 2024 through 2029. Then in fiscal year 2030, the local government reimbursement claims will begin being prorated. The projected backfill for Dubuque for the two-tier assessment limitation in Fiscal Year 2024 is estimated to be $587,446. FY 2025 Budget & Fiscal Policy Guidelines Page 37 IMPACT ON MULTI -RESIDENTIAL PROPERTY - EXAMPLE •CTUAL — HISTORICAL =�CACCULATIO ITY TAX DOLLAR PERCENT $2,349.34 FY 2015 "City" Property Tax FY 2016 "City" Property Tax $2,225.69 -$123.65 -5.26% FY 2017 "City" Property Tax $2,160.39 -$65.30 -2.93% FY 2018 "City" Property Tax $2,015.48 -$144.91 -6.71 % FY 2019 "City" Property Tax $1,870.21 -$145.27 -7.21 % FY 2020 "City" Property Tax $1,737.92 -$132.29 -7.07% FY 2021 "City" Property Tax $1,896.65 +$158.73 +9.13% FY 2022 "City" Property Tax $1,751.66 -$144.99 -7.64% FY 2023 "City" Property Tax $1,625.55 -$126.11 -7.20% FY 2024 "City" Property Tax $1,419.97 -$205.58 -12.65% Average FY 2016-FY 2024 -$103.26 -5.28% Beginning in FY 2017 (July 1, 2016), new State legislation created a new property tax classification for rental properties called multi -residential, which requires a rollback, or assessment limitations order, on multi -residential property which will eventually equal the residential rollback. Multi -residential property includes apartments with 3 or more units. Rental properties of 2 units were already classified as residential property. The State of Iowa will not backfill property tax loss from the rollback on multi -residential property. The rollback will occur as follows: Fiscal Year FY 2017 Rollback ', 86.25% Annual Loss of Tax Revenue $331,239 FY 2018 82.50% $472,127 FY 2019 78.75% $576,503 FY 2020 75.00% $691,640 FY 2021 71.25% $952,888 FY 2022 67.50% $752,366 FY 2023 63.75% $662,821 FY 2024 54.65% Total $1,186,077 $5,625,661 This annual loss in tax revenue of $1,186,077 from multi -residential property in FY 2024 and beyond will not be backfilled by the State. From Fiscal Year 2017 through Fiscal Year 2024 the City will lose $5,625,661 in total, meaning landlords will have paid that much less in property taxes. The state did not require landlords to charge lower rents or to make additional investment in their property. In Fiscal Year 2024, the multi -residential property class was eliminated and is reported with the residential property class. FY 2025 Budget & Fiscal Policy Guidelines Page 38 HISTORY OF INCREASES IN PROPERTY TAX ASKINGS Year Tax Askings % Change Impact Homeowner"in Tax Askings FY 1989 1 $10,918,759-12.00%-11.40% Sales Tax Initiated FY 1990 $10,895,321 -0.21 % -0.89% FY 1991 $11,553,468 +6.04% +3.77% FY 1992 $12,249,056 +6.02% +3.58% FY 1993 $12,846,296 +4.88% +5.19% FY 1994 $13,300,756 +3.54% +0.33% FY 1995 $13,715,850 +3.12% +2.40% FY 1996 $14,076,320 +2.63% -0.87% FY 1997 $14,418,735 +2.43% -0.42% FY 1998 $14,837,670 +2.91 % -0.71 % FY 1999 $15,332,806 +3.34% 0.00% FY 2000 $15,285,754 -0.31 % -0.17% FY 2001 $15,574,467 +1.89% 0.00% FY 2002 $15,686,579 +0.72% 0.00% FY 2003 $15,771,203 +0.54% -5.00% FY 2004 $16,171,540 +2.54% 0.00% FY 2005 $16,372,735 +1.24% +0.03% FY 2006 $16,192,215 -1.10% +1.72% FY 2007 $17,179,994 +6.10% -1.72% FY 2008 $18,184,037 +5.84% 0.00% FY 2009 $18,736,759 +3.04% +2.76% FY 2010 $19,095,444 +1.91 % 0.00% FY 2011 $19,878,962 +4.10% +2.47% FY 2012 $21,284,751 +7.07% +5.00% FY 2013 $22,758,753 +6.93% +5.00% FY 2014 $23,197,623 +1.93% +4.90% FY 2015 $24,825,015 +7.02% +3.23% FY 2016 $24,906,544 +0.33% +2.63% FY 2017 $26,375,291 +5.90% +1.08% FY 2018 $25,863,049 -1.94% 0.00% FY 2019 $26,494,205 +2.44% +1.91 % FY 2020 $26,296,081 -0.75% 0.00% FY 2021 $26,202,568 -0.36% -0.14% FY 2022 $26,205,437 +0.01 % 0.00% FY 2023 $26,205,437 0.00% +2.96% FY 2024 $26,623,300 +1.59% +2.94% Avera a FY 1989-2024 +2.61 % +0.85% **Does not reflect State unfunded portion of Homestead Credit. FY 2025 Budget & Fiscal Policy Guidelines Page 39 IMPACT ON TAX ASKINGS AND AVERAGE RESIDENTIAL PROPERTY To maintain the current level of service based on the previous assumptions would require the following property tax asking increases: Fiscal ,Year FY 2025 "City" Property Tax Askings $28,223,481 % Changein Tax Askings Residential +6.01 % % Impact on Avg. Property Residential +2.94% $ Impact on Avg. Propert +$23.25 FY 2026 $30,089,104 +6.61 % +5.00% +$40.75 FY 2027 $32,039,978 +6.48% +3.88% +$33.20 FY 2028 $34,285,752 +7.01 % +4.41 % +$39.18 FY 2029 $36,652,347 +6.90% +4.92% +$45.66 ;GUIDELINE The recommended guideline is a 5.00% or $40.75 increase for the average residential property owner. A one percent increase in the tax rate will generate approximately $280,987. These guidelines include $370,033 for recurring funded by property taxes and $518,808 for non -recurring improvement packages funded by FY2025 DRA Distribution and sanitary sewer administrative overhead when applicable. There are $3,217,861 in general fund improvement package requests. Iowa House File 718 passed during the 2023 legislative sessions, replaces previous changes made through Iowa Senate File 634 passed during the 2019 legislative sessions, makes changes to Iowa city and county budgets and taxes for Fiscal Year 2025 and later. Additional steps have been added to the budget approval process. The City of Dubuque is specifically impacted by the following steps of this new legislation: 1. Limits the General Fund levy by constraining growth by 2% or 3% each year, depending on the trigger hit: Non-TIF taxable growth under 3%, no reduction Non-TIF taxable growth over 3% but less than 6%, 2% reduction factor applied Non-TIF taxable growth over 6%, 3% reduction factor is applied The City of Dubuque Non-TIF taxable growth for FY2025 is 5.71%, the General Fund levy is constrained by a growth reduction factor of 2%. The General Fund levy for FY2025 is $7.94118 instead of the maximum levy of $8.10. Although the City is restricted to $7.94118 in the General Fund levy, the City has the flexibility to levy up to $15.2 million or a levy rate of $5.35681 in the Special Revenue Levies for employee benefits. In Fiscal Year 2024, the FY 2025 Budget & Fiscal Policy Guidelines Page 40 Special Revenue levy was $0.91356 and totaled $2.4 million. Any reduction in the General Fund levy can be shifted to the Special Revenue levies. 2. March 15: Cities must file a report with Iowa Department of Management containing information specified by new law to be contained in mailings. 3. March 20: County Auditor must send each property owner or taxpayer with the county by regular mail an individual statement with the specified information broken out by political subdivision comprising the taxpayer's district. 4. Taxpayer Statements must include: • Total Current Year Tax Rate and Dollars • Combined effective property tax rate for the city calculated using the sum of the current fiscal year's actual property tax certified for levy of all of city's levies • Proposed Budget Year Tax Rate and Dollars • If the Proposed Budget Property Tax Dollars exceed the current fiscal year's actual property tax dollars, a detailed statement of the major reasons for the increase, including the specific purposes or programs for which the city is proposing an increase • An example comparing the amount of property taxes on a residential property with an actual value of $100,000 in the current fiscal year and such amount on the residential property using the proposed property tax dollars for the budget year, including the percentage difference in such amounts. • An example comparing the amount of property taxes on a commercial property with an actual value of $100,000 in the current fiscal year and such amount on the commercial property using the proposed property tax dollars for the budget year, including the percentage difference in such amounts. • The city's percentage of total property taxes certified for levy in the owner's or taxpayer's taxing district in the current fiscal year amount all taxing authorities. • The date, time, and location of the city's public hearing on the information contained in the statements. • Information on how to access the city's internet site, the city's statements, and other budget documents for prior fiscal years. 5. Public hearing on proposed property tax amounts for the budget year and new taxpayer statements. • In addition to public hearing to adopt the budget. • Replaces maximum property tax dollars public hearing held in prior years. FY 2025 Budget & Fiscal Policy Guidelines Page 41 Must be separate from any other meeting of City Council, including any other meeting or hearing related to the budget. City Council can decrease, but not increase, the proposed property tax amount to be included in the budget. 6. Budget Certification deadline to Iowa Department of Management is April 30th instead of March 31 st. • If City has a debt service levy, budget must be adopted by April 15th. FY 2025 Budget & Fiscal Policy Guidelines Page 42 CAPITAL IMPROVEMENT BUDGET GUIDELINES U. INTEGRATION OF CAPITAL RESOURCES GUIDE' " _ To obtain maximum utilization, coordination and impact of all capital improvement resources available to the City, state and federal block and categorical capital grants and funds shall be integrated into a comprehensive five-year Capital Improvement Program (CIP) for the City of Dubuque. V. INTEGRITY OF CIP PROCESS 3UIDELINE The City shall make all capital improvements in accordance with an adopted Capital Improvement Program (CIP). If conditions change and projects must be added and/or removed from the CIP, the changes require approval by the City Council. W. RENOVATION AND MAINTENANCE GUIDEL IMF Capital improvement expenditures should concentrate on renovating and maintaining existing facilities to preserve prior community investment. X. NEW CAPITAL FACILITIES GUIDELINE Construction of new or expanded facilities which would result in new or substantially increased operating costs will be considered only if: 1) their necessity has been clearly demonstrated 2) their operating cost estimates and plans for providing those operating costs have been developed 3) they can be financed in the long term; and 4) they can be coordinated and supported within the entire system. Y. COOPERATIVE PROJECTS GUIDELINE Increased efforts should be undertaken to enter mutually beneficial cooperative capital improvement projects with the county, school district and private groups. Examples include cost -sharing to develop joint -use facilities and cost -sharing to improve roads and bridges are examples. FY 2025 Budget & Fiscal Policy Guidelines Page 43 Z. USE OF GENERAL OBLIGATION BONDS DISCUSSION The Iowa Constitution limits the General Obligation debt of any city to 5% of the actual value of the taxable property within the city. The Iowa legislature has determined that the value for calculating the debt limit shall be the actual value of the taxable property prior to any "rollback" mandated by state statute. On October 15, 2012, the City Council adopted a formal Debt Management Policy for the City of Dubuque. Prior to adoption of the formal policy, the City had already been practicing much of the policy, although the formal policy included some new additions. The most significant components of the Debt Management Policy include an internal policy of maintaining the City's general obligation outstanding debt at no more than 95% (except as a result of disasters) of the limit prescribed by the State constitution as of June 30th of each year. It is projected as of June 30, 2024 the City will be at 40.67%. City will not use short-term borrowing to finance operating needs except in the case of an extreme financial emergency which is beyond its control or reasonable ability to forecast. Currently there is no such debt, and none will be recommended in this process. Bond Financing Stipulations • Recognizing that bond issuance costs (bond counsel, bond rating, and financial management fees) add to the total interest costs of financing: • Bond financing should not be used if the aggregate cost of projects to be financed by the bond issue is less than $500,000 • City will consider long-term financing for the construction, acquisition, maintenance, replacement, or expansion of physical assets (including land) only if they have a useful life of at least six years • City shall strive to repay 20 percent of the principal amount of its general obligation debt within five years and at least 40 percent within ten years. • The City shall strive to repay 40 percent of the principal amount of its revenue debt within ten years. Debt Service Payments Total annual debt service payments on all outstanding debt of the City shall not exceed 20% of total annual receipts across all the City's funds. As of June 30, 2024, it is projected the City will be at 11.7%. Internal Reserve It shall be the goal of the City to establish an internal reserve equal to maximum annual debt service on future general obligation bonds issued that are to be abated by revenues and not paid from ad -valorem property taxes in the debt service fund. This shall begin with debt issued after July 1, 2013. This reserve shall be established by the fund or revenue source that expects to abate the levy, and shall be carried in said fund or revenue source on the balance sheet as a restricted reserve. This reserve is FY 2025 Budget & Fiscal Policy Guidelines Page 44 established where required by bond covenants. This internal reserve would be implemented by adding the cost of the reserve to each debt issuance. In July 2023, Moody's Investor Service upgraded the City's outstanding general obligation bonds from Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to Al. Notable credit factors include strong financial operations and ample revenue -raising flexibility, which has resulted in steadily improved available fund balance and cash. The City serves as a regional economic center and its regional economic growth rate has outpaced the nation over the past five years. In November of 2022, Moody's Investors Service ("Moodys") released a new rating methodology for cities and counties. Two significant changes result from the new methodology; cities are now assigned an issuer rating meant to convey the creditworthiness of the issuer as a whole without regard to a specific borrowing, and business -type enterprise funds are now being considered together with general fund revenues and balances in the determination of financial performance. Under the new methodology, there are two metrics that contribute to financial performance. Available Fund Balance Ratio ("AFBR") = (Available Fund Balance + Net Current Assets/Revenue) and Liquidity Ratio ("LR") = (Unrestricted Cash/Revenue). For Aa credits, AFBR ranges from 25-35, and LR ranges from 30-40%. The City was evaluated by Moody's under the old methodology in May of 2022 in connection to its annual issuance of bonds. At that time, Moody's calculated the City's AFBR to be 45.2%, and its LR to be 59.8%. The balances used in these calculations were likely elevated due to unspent ARPA funds. The change in methodology will now consider revenues and net assets from business -type activities in these calculations. As such, the City's general obligation rating will now be directly impacted by the financial performance of enterprise funds. Establishing rates and charges adequate to provide both debt service coverage and significant liquidity will be necessary to maintain the City's ratings. In May 2021, Moody's Investor Service upgraded the City's Water Enterprise's outstanding revenue bonds from Al to A2 and affirmed the Aa3 credit rating on general obligation bonds. Notable credit factors include a sizable tax base, a wealth and income profile that is slightly below similarly rated peers, and increased financial position that will decline in fiscal years 2021 and 2022 and somewhat elevated debt and pension liabilities. FY 2025 Budget & Fiscal Policy Guidelines Page 45 General Obligation Debt Fiscal Year 2024 Debt FY 2024 Debt Limit: The FY 2022 assessable value of the community for calculating the statutory debt limit is $5,254,447,903, which at 5%, indicates a total General Obligation debt capacity of $262,722,395. Based on Outstanding G.O. debt (including tax increment debt, remaining payments on economic development TIF rebates, and general fund lease agreement) on June 30, 2024 will be $106,837,518 (40.67% of the statutory debt limit) leaving an available debt capacity of $155,884,878 (59.33%). In FY 2023 the City was at 39.36% of statutory debt limit, so 40.67% in FY 2024 is a 3.32% increase in use of the statutory debt limit. It should be noted that most of the City of Dubuque's outstanding debt is not paid for with property taxes (except TIF), but is abated from other revenues. Exceptions include one issuance for the replacement of a Fire Pumper truck in the amount of $1,410,000 with debt service of $81,400 in FY 2024 and one issuance for the franchise fee litigation settlement in the amount of $2,800,000 with debt service of $140,000 in FY 2024. Included in the debt is $3,586,760 of property tax rebates to businesses creating and retaining jobs and investing in their businesses. Statutory Debt Limit FY 2025 Budget & Fiscal Policy Guidelines Page 46 FY24 Statutory Debt Limit Used (as of June 30th) 100% 90% o 87 /o 82% 79% 79% ° 87° 72% 74% 70% 75 /0 6% ° 66% 66% 6 60 /o T�2 o/o 53% 47% 44 ° 50% /0 43% 0 41 % 39 /0 340/ 37% 37% 34% 0 30% 27% ° 24/°21%19 o 25% .� /o TI TI TI T TI TI TI TI TI TI TI TI TI TI TI TI TI TI TI L L j Ln 0) V co co O N W A 07 CD -4 O to O N W FY16 Adopted f FY24 Adopted The City also has debt that is not subject to the statutory debt limit. This debt includes revenue bonds. Outstanding revenue bonds payable by water, sewer and stormwater fees on June 30, 2024 will have a balance of $131,993,897. The total City indebtedness as of June 30, 2024, is projected to be $254,734,006. The total City indebtedness as of June 30, 2023, was $251,928,124. In FY 2024, the City will have a projected $2,805,882 or 1.26% more in debt. The City is using debt to accomplish necessary projects. FY 2025 Budget & Fiscal Policy Guidelines Page 47 The following chart shows Dubuque's relative position pertaining to use of the statutory debt limit for Fiscal Year 2023 compared to the other cities in Iowa for Fiscal Year 2023 with a population over 50,000: Fiscal Year 2023 Legal Debt Limit Comparison for Eleven Largest Iowa Cities Rank City Legal Debt Limit (5%) Statutory Debt Outstanding Percentage of Legal Debt Limit Utilized 11 Des Moines $ 792,697,654 $ 529,035,000 66.74 % 10 W. Des Moines $ 506,339,850 $ 319,175,000 63.04 % 9 Cedar Rapids $ 652,295,825 $ 366,140,000 56.13 % 8 Waterloo $ 216,437,019 $ 115,999,161 53.59 % 7 Davenport $ 409,777,672 $ 208,650,000 50.92 % 6 Sioux City $ 293,887,647 $ 143,694,902 48.89 % 5 Dubuque (FY24) $ 262,722,395 $ 106,837,518 40.67 % 4 Ankeny $ 395,854,796 $ 104,450,000 26.39 % 3 Ames $ 275,808,881 $ 65,175,000 23.63 % 2 Iowa City $ 362,419,812 $ 63,795,000 17.60 % 1 Council Bluffs $ 321,835,908 $ 50,776,645 15.78 Average w/o Dubuque $ 422,735,506 $ 196,689,071 42.27 Percent of Legal Debt Limit Utilized 80% 66.74% 63.04% 60% 48.89/o ° 56.13% 0 50.92% 53.59 /o 40.67% 42.27% 40% 23.63% 26.39% 20% - 15.78% 17.60% 0% - �G\�\� \o01 G�� a e��ot� ,10 a1 �1 o\�e5 .\�, GO �CF, Oe Oe seta P Dubuque ranks as the fifth lowest of the use of statutory debt limit of the 11 cities in Iowa with a population over 50,000 and Dubuque is below the average of the other Cities. FY 2025 Budget & Fiscal Policy Guidelines Page 48 FY24 Total Debt (In Millions) $324 $302.3 $297 $295.5 $290.1 $286.9 $282.0 $279.9 $282.1 $270 $285.7 265.6 $267.4 $265. $274.7 $250.6 $255.9 $251.9 $254.7 $264.5 $243 $252.2 $252.1 p $244.3 $241.4 $216 $226.2 $189 $162 2.9 $191 $1 $155.9 $135 r FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY16 Adopted --§[— FY24 Adopted By the end of the Fiscal Year 2024 5-Year Capital Improvement Program (CIP) budget the total amount of debt for the City of Dubuque would be $236.8 million (30.12% of the statutory debt limit) and the projection is to be at $155.9 million (18.76% of statutory debt limit) within 10 years. Part of the City's FY 2014 debt was in the form of a grant from the Iowa Flood Mitigation Program. Through a new state program, the City is able to issue $28.25 million in revenue bonds payable from the 5 percent State Sales Tax increment for projects in the Bee Branch Watershed allowing the City to complete the Bee Branch Creek Restoration, construct permeable alleys, replace the Bee Branch flood gates, complete North End Storm Sewers, construct a Flood Control Maintenance Facility, install Water Plant Flood Control and complete 17t" Street Storm Sewer over the next twenty years. The FY 2025-2029 Capital Improvement Program is currently being reviewed and balanced, so there are no revised Fiscal Year 2025 debt projections yet. As we approach the preparation of the FY 2025-2029 Capital Improvement Program (CIP) the challenge is not the City's capacity to borrow money but (a) how to identify, limit, and prioritize projects which justify the interest payments and; (b) how to balance high -priority projects against their impact on the property tax rate. FY 2025 Budget & Fiscal Policy Guidelines Page 49 GUIDELINE There are many high priority capital improvement projects which must be constructed during the FY 2025 - FY 2029 period. The potential of partially forgivable State Revolving Fund Loans and an increase in grant funding may impact the need to borrow for projects. As in the past, debt will be required on several major capital projects, including the Bee Branch Watershed Project, Airport Improvements, Park Improvements, Sidewalk and Street Improvements, Sanitary Sewer Fund, Parking Fund, and Water Fund. Borrowings will also include smaller projects and equipment replacements such as Park developments and Public Works equipment. These smaller borrowings will be for a term not exceeding the life of the asset and not less than six years in accordance to the Debt Management Policy. Alternative sources of funds will always be evaluated (i.e. State Revolving Loan Funds) to maintain the lowest debt service cost. AA. ROAD USE TAX FUND DISCUSSION Actual Road Use Tax Fund receipts are as follows: FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 $1.0 (Z" $3.0 Road Use Tax (In Millions) $5.7 $6.0 $7.1 $7.2 $7.3 $7.5 $7.4 $8.6 $8.2 $8.2 $61 $8.0 $9.0 The FY 2024 budget was based on receiving $8,430,000 in Road Use Tax funds. In FY 2024, 100% of the Road Use Tax income is in the operating budget. The State of Iowa increased the gas tax 10 cents per gallon in FY 2016. Since the State of Iowa has not revised the Road Use Tax Fund revenues since 2016, the revenues are beginning to offer challenges to funding local activities. FY 2025 Budget & Fiscal Policy Guidelines Page 50 GUIDELINE It is preferable to shift Road Use Tax funds to the capital budget for street maintenance and repair to reduce the need to borrow funds for routine street maintenance and improvements. This shift cannot occur until there are increased revenues or reduced expense that would allow this shift without a property tax impact. BB. COMMERCIAL AND INDUSTRIAL DEVELOPMENT GUIDELINE Current City, commercial and industrial development efforts should be continued to (a) preserve current jobs and create new job opportunities and (b) enlarge and diversify the economic base. Financing these efforts and programs should continue to be a high priority. CC. HOUSING GUIDELINE To maintain an adequate supply of safe and decent housing, the City should strive to preserve existing single family and rental housing that is not substandard and provide opportunities for development of new housing, including owner occupied, within the City's corporate limits for all residents, particularly for people of low and moderate income. Workforce rental housing is becoming increasingly important and the City provides incentives for building rehabilitations. In 2023, the City Council adopted housing incentive programs through the use of Tax Abatement and Tax Increment Financing. The City of Dubuque currently has over 2,200 units either completed or being initiated to help fill the housing shortage in Dubuque. DD. SALES TAX GUIDELINE Sales Tax revenue shall be used according to the following split: Sales Tax 50%: Property Tax Relief Sales Tax 30%: (a) The reduction by at least 75% of street special assessments. 30% (b) The maintenance and repair of streets. Sales Tax 20%: (a) The upkeep of City -owned property such as sidewalks, steps, storm 20% sewers, walls, curbs, traffic signals and signs, bridges, buildings, and facilities (e.g. Airport, Five Flags Center, Library, Law Enforcement Center, City Hall, Fire Stations, Parks, and Swimming Pools). (b) Transit equipment, such as buses (c) Riverfront and wetland development (d) Economic Development Projects FY 2025 Budget & Fiscal Policy Guidelines Page 51 EE. NET CASH PROCEEDS (SURPLUS DISTRIBUTION) FROM THE DUBUQUE RACING ASSOCIATION DISCUSSION The contract with the Dubuque Racing Association calls for distribution at the end of its fiscal year, December 31 st, of 50 percent of its net cash operating funds to the City of Dubuque. In early -February, the City receives payment of proceeds to be distributed. These proceeds are then allocated for capital improvements, with the highest priority given to reducing the City's annual borrowing. The Dubuque Racing Association provides the City with projections of future distributions. Since gaming is a highly volatile industry, the estimates are discounted prior to including them in the City's Five -Year CIP. The February 2025 DRA distributions will be used in Fiscal Year 2025 will be used to fund the stormwater fee grants and for non -recurring improvement packages. This is a change from past use of DRA distributions because all funds will be used for Fiscal Year 2025 operations. A change from past use of DRA distributions, 0% of the February 2025 projections of operating surplus have been anticipated as resources to support the Fiscal Year 2025 capital improvement projects. The estimates received from the DRA will be reduced by 5 percent for FY 2027 resources, 10 percent for FY 2028, and 15 percent for FY 2029 resources, to provide a margin of error in case the estimates are not realized. GUIDELINE $519,518 of February 2025 DRA distributions will be used for FY2025 non -recurring improvement packages and $519,484 will be used for FY2025 stormwater fee grants This is a change from past use of DRA distributions because all funds will be used for Fiscal Year 2025 operations.ln Fiscal Year 2026 and beyond, the City anticipates distribution of a significant amount of net cash proceeds for use in the Capital Improvement Program. These amounts will be budgeted in the Five -Year CIP in the year they are received and will be used to reduce required General Obligation borrowing. The three out -years will be discounted by 5 percent, 10 percent, and 15 percent respectively. FY 2025 Budget & Fiscal Policy Guidelines Page 52 FF. EMPHASIS ON INITIATIVES THAT REDUCE FUTURE OPERATING BUDGET EXPENSE Capital improvement expenditures that will reduce future maintenance and operating expense will receive priority funding and these types of initiatives will be encouraged in all departments and funding sources as a means of maximizing the use of available resources. This emphasis reflects fiscally responsible long-range planning efforts. GG. USE OF GAMING -RELATED RECEIPTS DISCUSSION On December 14, 2021, an amended lease took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5% of coin-in.The amendment increased the amount retained by the DRA for the operating budget reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the Depreciation and Improvement Fund for facility maintenance. In addition, In addition, the distribution of net profit is now split three ways between the City, charities, and the Schmitt Island Master Plan Implementation from a two-way split between the City and charities. The amended lease has an expiration date of December 31, 2055. The following shows the historical split of DRA gaming taxes and rents between the City's operating and capital budgets: 150% - 100% - Split of DRA Gaming Taxes & Rents Between Operating & Capital Budgets 50% 25% 24% 15% 14% 10% 3% —% 1 % 3% 4% 4% —% —% —% —% —% —% —% —% —% 50% - 1 I o 87% 90% 97%100%99% 97% 96% 96%100%100%100%100°/a 00%100°/a 00%100%100% 75% 76% 85 /o 0 50% a I I liiii■ I Operating Capital FY 2025 Budget & Fiscal Policy Guidelines Page 53 Notable Changes: FY 2004 A new lease took effect with the Dubuque Racing Association for lease of the Dubuque Greyhound Park and Casino. This new lease was negotiated after the FY 2005 budget was approved and raised the lease payment from '/2% of coin -in to 1 % of coin -in. This new lease and the expansion of gaming at Dubuque Greyhound Park and Casino, from 600 gaming positions to 1,000 gaming positions, effective August 1, 2005, provided additional revenues to the City of Dubuque. FY 2009 The Diamond Jo expanded to a land -based barge casino facility and increased to 1,100 slots on December 1, 2008. This expansion was projected to decrease the Q gaming market and correspondingly the coin -in by just over 21 percent. Based on the projected market share loss, the City did not receive a distribution of cash flows from the Dubuque Racing Association (DRA) in Fiscal Years 2009 and 2010. FY 2010 The operating portion of the split now includes the debt service required on the 2002 general obligation bonds for the America's River Project that was previously considered as part of the capital portion of the DRA lease. Debt obligations are considered a continuing annual expense and are more accurately reflected as part of the operating portion of the DRA lease. FY 2011 DRA distributions restarted in FY 2011 instead of the projected year of FY 2012. FY 2016 A reduction in revenue in the Greater Downtown TIF urban renewal area resulted in reduced revenues to make debt payments and it was necessary for the general fund to support $84,104 in FY 2015 and $78,242 in FY 2016 of debt service payments, which were funded by reducing the amount of gaming revenues from taxes and DRA lease that goes to capital recommended in FY 2016. FY 2021 A lease amendment took effect with the Dubuque Racing Association for the lease of the Q Casino. This lease amendment added a payment equal to'/2% of monthly sports wagering conducted on Q Sportsbook retail or Q advance deposit sports wagering internet site. FY 2022 A lease amendment took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment raised the lease payment from 1 % of coin -in to 1.5% of coin-in.The amendment increased the amount retained by the DRA for the operating budget reserve from 5% to 10%. The lease amendment eliminates the $10,000 per month DRA payment to the Depreciation and Improvement Fund for facility maintenance. In addition, the amended lease has an expiration date of December 31, 2036. The change in market share and changes in the lease agreement impacts the City's lease payment from the DRA. The lease agreement with the City of Dubuque (effective 1/1/22) requires the DRA to pay the City 1.5 percent of coin -in from slot machines, 4.8 percent of gross revenue from table games, and 0.5 percent of sports wagering. FY 2025 Budget & Fiscal Policy Guidelines Page 54 1***** FY 2023 A lease amendment took effect with the Dubuque Racing Association for lease of the Q Casino. This lease amendment extended the termination date from 2036 to 2055. The amendment allows $1.5 million of cash reserve fund as a down payment of a construction loan in FY23. FY 2024 A lease amendment took effect with the Dubuque Racing Association for Lot 1 of Chaplain Schmitt Island which contains the area where the casino, existing hotel and restaurant, and the new hotel are located. This lease amendment consolidates separate leases for the casino and hotel/restaurant into a single lease, adds a consumer price index escalator on the lease payment related to the hotel and restaurant, establishes a debt payment reserve fund of $7 million over five years, clarifies responsibility for environmental issues, and allows usage of $3 million of funds in the cash reserve fund by the DRA for downpayment on construction improvements. In calendar year 2023, gross gaming revenues were down -9.7% for the DRA and the Diamond Jo was up +3.6% as compared to calendar year 2022. Gross gaming revenue for DRA was impacted by construction disruption as the property underwent redevelopment starting in September 2023. In calendar year 2023, the DRA showed increases, up +15.6%, in sports betting revenue, hotel room revenue, food and beverage sales, entertainment sales and other revenue as compared to calendar year 2022. This resulted in calendar year 2023 total gross revenue being down at -5.0% as compared to calendar year 2022. The current Dubuque market is approximately $123.6 million annually in 2023 down from the $126 million market in 2022 and up from the $120 million market in 2019 (pre COVID). DRA share of the market was 37.8% in 2023 (impacted by construction disruption), 41.1 % in 2022, 41.2% in 2021 and 41.2% in 2019. The DRA has projected a +5% increase in gross gaming revenue and a +2.7% increase in total gross revenue for calendar year 2024. The DRA gaming projections include growth in gaming revenues over the next five years with a growth rate of +8.1 % in FY 2025, a growth rate of 1.1 % in FY 2026, a growth rate of 1.0% in FY 2027, and a growth decline of -1.0% in FY 2028. Two key factors to note for the five-year forecast budget are 1.) it is derived from the feasibility study done by the consultants Global Market Advisers and 2.) it takes into consideration potential disruption caused by construction, the opening of remodeled or new assets on our campus and potential new competition in calendar year 2027/2028. During 2022, Iowa passed legislation that put a moratorium on new casino licenses for a two-year period. This law came as Linn County (Cedar Rapids) was preparing to get a casino license approved by the IRGC. Our five-year budget forecast that Linn County will pursue a casino license after the moratorium expires and a new casino will be operational in calendar year 2027/2028. During 2019, Illinois passed legislation regarding six additional casinos, Sports Betting, and increased Video Lottery Terminals (VLT) throughout the state. The casino license issued for Rockford will be the closest. The Rockford City Council voted on October 7, FY 2025 Budget & Fiscal Policy Guidelines Page 55 2019, to certify the Hard Rock Casino as the city's choice for a new casino. On November 10, 2021, Hard Rock Casino Rockford opened its temporary casino which includes 635 slot machines and Electronic Table Games. The Hard Rock Casino's permanent $310M casino and hotel is currently under construction and is scheduled to open in late August 2024. The new 189,000 square -foot casino will include 1,300 slot machines, 44 table games, restaurants, live concert venue, retail stores and a 250-room hotel. Ho -Chunk Nation is planning on the construction of $405 million casino and hotel resort in Beloit Wisconsin. Currently this no date set for when the project will start. Once started, construction will last approximately 18 to 24 months. The 500 per patron tax previously received from the Diamond Jo was replaced by a $500,000 fixed payment based on their revised parking agreement which expires June 16, 2029. SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2025 Department Description RECURRING DECISION PACKAGE COSTS - General Fund Airport Only $60,000 is currently budgeted to advertising, which all goes towards the State of Iowa Air Service Grant expenses. $10,000 is needed to cover the general advertising costs of the Airport for the whole year. This money is especially needed now with all the recent service changes. Historically, the advertising budget was much larger but was lowered to help in the efforts of budgetary cuts in the City as a whole. City Manager's Office The creation of a permanent Climate Action Coordinator position, which currently exists as a limited -term position. The limited term position was budgeted to run through FY 2025 and the new permanent position being requested for FY 2025 is at the same pay range and FTE status, this would have a net cost of $0 in FY 2025 (FY25 has non recurring savings). The additional, recurring cost of funding this position beyond the original limited -term timeframe would not be present until FY 2026. Recurring/Non- ADDL ADDL Net Tax MVM Recurring Expense Revenue Impact Y/N R $ 10,000 $ 10,000 N R $ 85,254 $ 55,202 $ 30,052 N City Manager's Office Professional development for the City Manager's Office Administrative R $ 6,000 $ 3,885 $ 2,115 N Assistants (two positions). If approved, this package would allow each Administrative Assistant to travel to one annual training event such as the Office Dynamics Annual Conference, the Laserfiche Empower Conference, or the funding could be broken up for attendance to smaller local educational seminars. R City Manager's Office Additional hours for the Part -Time Office Assistant position in the City R $ 4,834 $ 806 $ 4,028 N Manager's Office. This position is currently budgeted for 10 hours per week (0.25 FTE, NA-38). In an effort to reduce the work load of the current administrative staff in the City Manager's Office City Manager's Office Establishing an annual tree voucher program. This funding would be used to pay for the vouchers used to pay for trees at local nurseries as well as space rental for annual learning sessions. City Manager's Office Host a "City Academy', a full day of professional development for all City staff. The event would build off of the existing City employee luncheon held annually during Public Service Recognition Week. Community Impact Increase the City's financial support of the Administrative Assistant position by 0.37 FTE. Volunteer Iowa lost federal funding, which means through no fault of the Community Impact Division, the grant funding from Volunteer Iowa will not be availablein FY 25 Community Impact Funding to cover the program materials needed to implement the AmeriCorps Program's Social -Emotional Learning curriculum on an annual basis. R $ 10,000 $ 6,475 $ 3,525 N R $ 75,000 $ 48,563 $ 26,437 N R $ 27,626 $ 27,626 N R $ 2,500 $ 2,500 N Department Description Recurring/Non- ADDL ADDL Net Tax MVM Recurring Expense Revenue Impact Y/N Community Impact Secure City funding to continue the Volunteer DBQ initiative. R $ 8,000 $ 8,000 N VolunteerDBQ has been previously funded by the Volunteer Generation Fund through the Iowa Commission on Volunteer Service. This packages seeks to secure City funding to continue the Volunteer DBQ initiative. This proposal would utilize the current/existing software. There is an alternative prosoals to upgrade to a different software. Community Impact Secure City funding to continue the Volunteer DBQ initiative. R $ 16,000 $ 16,000 Y VolunteerDBQ has been previously funded by the Volunteer Generation Fund through the Iowa Commission on Volunteer Service. This packages seeks to secure City funding to continue the Volunteer DBQ initiative. This proposal would upgrade to a different software. There is an alternative prosoals that would utlize/keep the current software. Community Impact The attendance of Community Impact Staff (5 employees) to attend R $ 9,700 $ 9,700 N Policyl-ink's 2024 Equity Summit. Conference Center This improvement package request provides for the addition of 10 R $ 2,700 $ 2,700 N (Grand River Center) cameras in the public areas of GRC. No security cameras are in the public space, entrances or exits. This project includes cameras, cabling and installation. Economic Development An intern (0.25 FTE, NA-38) to work 10 hours per week in order to R $ 10,236 $ 6,628 $ 3,608 N update and manage the website domain and email hosting for the alltogetherdubuque.com webpage. In 2021, the City received a $10,000 Iowa Tourism grant which was used, along with a $5,000 match from the Arts & Cultural Affairs budget, to create the branding and website design with the intent to highlight Creatives and their work as well as to provide the community access to art in Dubuque. This aligns with the City's Arts and Culture Master Plan. Economic Development Purchase of 3 additional brochure holders to be placed on the 3 R $ 2,500 $ 2,500 N existing Art on the River kiosks, additional printing costs for the brochures and translation services. These holders are for the purpose of adding new brochures in Spanish with the intent to be more inclusive of Dubuque's diverse population. Economic Development Increase stipend paid to artists who are chosen to display sculptures R $ 2,200 $ 2,200 N on the riverfront. Raising the stipend will directly affect the ability of artists to secure materials, resulting in an increased number of diverse and minority artist participants Economic Development Additional $187,000 to sponsor 20 Dream Center students for an R $ 187,000 $ 187,000 N entire year of programming which would impact children of low-income and working families. The City recently funded a $276,000 funding gap for capital improvements and a $15,000 planning grant for those improvements. The City currently funds a $63,000 contracted service agreement. Economic Development Provide $37,000 in additional funding to the Fountain of Youth. The R $ 37,000 $ 37,000 N funding will be a continuation of the Partners in Change and Real Talk programming. This funding will assist with providing services to the low income populations of Dubuque and the surrounding communities. The City currently funds a $63,000 contracted service agreement. Engineering Establish a program to vacate two to three parcels of City property R $ 15,000 $ 10,000 $ 5,000 N each year. The intent of this package is to reduce the City's liability with all vacant parcels Department Description Recurring/Non- ADDL ADDL Net Tax MVM Recurring Expense Revenue Impact Y/N Engineering Funding to allow complex or expedited development site plan review R $ 50,000 $ 50,000 N work to be outsourced to outside engineering consultants. The Engineering Department sometimes lacks enough available technical staff to complete reviews within a specifically requested timeframe. Engineering Engineering and Housing to hold a joint annual meeting intended for R $ 1,666 $ 1,666 N area contractors for the purpose of educating attendees on updates to building codes and specifications. Split up among the general fund, Stormwater, and Sanitary Sewer. Engineering The addition of one full-time HVAC Technician position (1.00 FTE, OE- R $ 93,910 $ 93,910 N 16) to provide HVAC repair, Boiler repair, and Backflow testing services to all city Departments. Contractors are currently used for this work, and if funded, the need for contracts would decrease significantly. The expense of the position would be offset by cost saving from hiring contracts less fequently, and the true cost savings would be realized in future years. Office of Equity and A program to be created for the public and will consist of four, two- R $ 8,750 $ 8,750 N Human Rights hour sessions offered twice a year in English, one time a year in Spanish, and one time a year in Marshallese. These sessions would include both a presentation and and space for discussion on topics such as diversity, equity, inclusion, justice, knowing your rights, discrimination, emotional intelligence, and leadership Fire Additional captain (+1.0 FTE, F-05) to serve in the capacity of field R $ 128,145 $ 128,145 Y training officer/ safety officer for the 1st shift. The position would work under an assistant chief to coordinate and deliver hands-on fire and EMS training. The position will also serve in the capacity of safety officer for each shift, responding on all significant fire and EMS incidents. Recommended to start August 1, 2024. Fire Additional captain (+1.0 FTE, F-05) to serve in the capacity of field R $ 138,622 $ 138,622 N training officer/ safety officer for the 2nd shift. The position would work under an assistant chief to coordinate and deliver hands-on fire and EMS training. The position will also serve in the capacity of safety officer for each shift, responding on all significant fire and EMS incidents. Department Description Recurring/Non- ADDL ADDL Net Tax MVM Recurring Expense Revenue Impact Y/N Fire Additional captain (+1.0 FTE, F-05) to serve in the capacity of field R $ 138,622 $ 138,622 N training officer/ safety officer for the 3rd shift. The position would work under an assistant chief to coordinate and deliver hands-on fire and EMS training. The position will also serve in the capacity of safety officer for each shift, responding on all significant fire and EMS incidents. Fire Grow the department's EMS Division to provide support for an R $ 164,468 $ 164,468 Y expanding service by adding (1.0 FTE, GE-50) Bureau Chief position. Approximately 80% of the department's 8,000 incidents are EMS - related. The previous structure of managing the EMS Division with one member is beyond capacity. Fire Securing contract for clearing snow over 2". Crews will continue to R $ 6,000 $ 6,000 N maintain regular snow/ice removal and salting for minimal events. Establishing a regular contract will reduce the impacts of manual snow removal for heavier days and to allow crews to continue providing emergency response throughout the shift day. Fire Uniform purchases for our Administrative Assistant and our Lead R $ 600 $ 600 N Administrative Assistant. Health To provide an overnight heating or cooling center with staffing in the R $ 19,289 $ 19,289 N event of extreme heat or extreme cold weather events. During the summer of 2023, the need of an overnight cooling center was assessed during two different high -heat events. The money would be used towards the activation often cooling or warming centers from 9PM-7AM and would pay for a worker at GE- 32 and security from the Police Department at P-02 (with overtime for both positions factored in) as well as rent for Five Flags Majestic Room, cleanup costs and water/ice. Health Reimburse hunters for deer license tags for every adult doe harvested, R $ 3,500 $ 3,500 N including their first doe harvested. This is a change from the current practice of only one per season. The cost of the first deer license is $28.50 and additional licenses are $15 each. The cost for the current pilot program is estimated at $2,325. Health $1,500 annual budget for overtime incurred by the hourly account R $ 1,500 $ 1,500 Y clerk. There is currently $0 budgeted for overtime, and the account clerk must receive comp time if they need to work over 40 hours in any given week. Continuously building up comp time, then using comp time for these positions is not sustainable because then vacation time cannot be used due to workload. Health to fund the purchase of 6 new live traps. Approximately one-third of R $ 480 $ (480) N trap requests cannot be fulfilled currently. The estimated revenue for trap rental is $480 per year. This project assists in removing barriers associated with low-income communities and contributes towards the evaluation of fines, fees, and rate structure. The revenue generated could be directly allocated to the low-income portion of our community. Department Description Health $5,000 towards a low-cost rabies vaccination, which would be administered at the time of spay/neuter during the Humane Society's neuter clinics. This amount would fund the total amount of vaccinations for approximately 200 pets at $20 each or could fund half of the rabies vaccination costs for 400 pets at $10 each. This project assists in removing barriers associated with low-income communities and contributes towards the evaluation of the fines, fees, rate structure. Housing Implement a minimum fee for demolition permits - $75 for garage with no utilities, $150 for single and 2-family dwellings, and $250 for all others. This improvement package is required to cover the cost of an inspection and administration for demolition permits Recurring/Non- ADDL ADDL Net Tax MVM Recurring Expense Revenue Impact Y/N R $ 5,000 $ 5,000 N R Housing Set minimum permit fee amounts of $50 for building, mechanical, R electrical, and plumbing permits. This package would also increase the issuance fee for all permit types from $10 to $20 (note the issuance fee is included in the $50 minimum permit fee). This improvement package is required to cover the cost of inspections and administration for these permit types Housing Twelve (12) licenses of Bluebeam software. This software provides robust, user -definable markup tools and templates to improve the quality and consistency of interactions with developers, contractors and property owners. The software provides proven online collaboration tools which can be used to track, organize and output review comments for plan review documentation. Housing Increased financial assistance to ensure the Four Mounds HEART program is able to continue to provide youth with opportunities to learn trade skills in a classroom and in -field format, as well as continue to assist in creating affordable housing options in Dubuque. The program has expanded to include adults, so more money is needed. Housing Increased financial assistance to ensure Community Solutions of Eastern Iowa is able to continue to provide and answer the homeless hotline. In FY23, the hotline received 3,216 calls, with 473 persons placed on the referral list for services. Housing Implement a square -footage -based value calculation for all new construction and additions based on the published International Code Council's building square -footage -valuation tables. It is anticipated to be a zero or near zero dollar change and the intent is to establish an equitable method for establishing valuations. Human Resources Human Resources staff to attend new conferences and attain new certifications that have not previously been budgeted for. R $ 4,272 R $ 15,000 R $ 44,000 R $ $ 2,504 $ (2,504) Y $ 78,884 $ (78,884) Y $ 4,272 Y $ 15,000 N $ 44,000 N $ — N R $ 7,000 $ 4,533 $ 2,467 N Human Resources Increase the amount of annual funding available through the City's R $ 36,900 $ 6,151 $ 30,749 N Tuition Reimbursement Program. We can anticipate that for the coming year, we will have insufficient funding to accept more than one additional applicant. Human Resources Purchase a Human Resources Information System (HRIS), which is a R $ 165,000 $ 27,506 $ 137,495 Y software solution that includes all aspects of managing the employee database and directory, applicant tracking, benefits administration, payroll processes, work scheduling/time and attendance, leaves tracking, compliance protocols, customizable insight reports, employee self-service, performance management, and HR processes accessible and managed on mobile apps. Also has a non reucrring portion Department Description Recurring/Non- ADDL ADDL Net Tax MVM Recurring Expense Revenue Impact Y/N Information Technology This improvement package is for the creation of a new User R $ 78,036 $ 78,036 N Technology Specialist under the Information Technology (IT) department (1.00 FTE, GE-29). As the City organization continues to grow, so does the demand for IT infrastructure and support services. There is an alternative proposal to upgrade an existing position to this new position. Information Technology This alternative proposal seeks to upgrade a current Help Desk R $ 8,117 $ 8,117 N Support Technician position (1.00 FTE, GE-27) with a new User Technology Specialist position (1.00 FTE, GE-29), resulting in no change in FTEs to the Information Technology Department. There is an alternative propsoal to instead create a new position instead of replacing an existing one. Information Technology New End Point Management Software that will bring together several R $ 5,800 $ 5,800 N pieces of software that we currently use under one umbrella: Asset Management, Patch Management, Software Deployment, App Management, Data Loss Prevention, Ransomware Protection, Mobile Device Management, BitLocker Management, Remote Access and Troubleshooting, OS Imaging and Deployment, as well as others Information Technology Ongoing training and education budget for the Senior Network/System R $ 20,000 $ 20,000 N Administrator and the Chief Information Technology Security Officer. Investing in the education and training of staff is essential for the ongoing security and resilience of our organization. Information Technology Send the Chief Information Officer from the IT department to the R $ 2,100 $ 2,100 N International Association of Chiefs of Police Conference. The Chief of Police, who has attended this conference in the past, has recommend the Chief Information Officer attend this conference due to the conference's emphasis on technology related content. Information Technology Provide for ongoing training and education for the Enterprise R $ 10,000 $ 10,000 N Applications Team. As technology rapidly evolves, it is essential for us to stay up to date with the latest trends, tools, and skills to provide innovation and the best possible service to the city staff Information Technology This improvement package is for a city-wide audio/visual (A/V) R $ 20,000 $ 20,000 N maintenance contract. Legal For the creation of a full-time Assistant City Attorney I position (1.0 R $ 127,265 $ 77,105 $ 50,160 N FTE, GE-37) within the City Attorney's Office. Creation of this position will facilitate a succession plan for the individual to become familiar with the organization and processes in the City. The goal is to grow and develop the individual hired to take on more responsibility and duties, allowing for efficiencies and reduced response times and better balanced workload for the City Attorney's Office. Department Description Recurring/Non- ADDL ADDL Net Tax MVM Recurring Expense Revenue Impact Y/N Library An annual programming budget for the Carnegie -Stout Public Library R $ 6,000 $ 6,000 N Maker Space. The Maker Space has seen an 89% growth in programming attendance. Library Eliminate a part-time Information Technology Intern position (0.50 R $ 10,076 $ 10,076 N FTE, NA-28) and replace it with a part-time Library Assistant position (0.50 FTE, GE-25). Library This improvement request is for a part time (.50 FTE, GE-28) R $ 38,918 $ 38,918 N Marketing Coordinator position to be added to Administration activity and the General Fund. This position currently exists, but is paid out of the Library Trust fund. Parks General fund savings portion of this pacakge, other portion in Stormwater. Adding one full-time Maintenance Technician position (1.00 FTE, GD-06) assigned to the Bee Branch Creek Greenway area. Partially offset by eliminating 0.11 FTE from temporary Parks Groundskeeper positions and also eliminating 0.50 FTE from the temporary Landscape Crew Member positions. R $ (19,896) $ (19,896) N Parks Adding one full-time Maintenance Technician position to the Park R $ 41,941 $ 41,941 N Division (1.00 FTE, GD-06) assigned to the Park Areas and Maintenance activity. Eliminates 0.96 FTE from temporary Parks Groundskeeper positions to help partially offset the cost for the new full-time Maintenance Technician position. Parks This improvement level request provides for 1510 additional hours for R $ 37,120 $ 37,120 N temporary Park Rangers during the park season (0.72 FTE). Planning Four licenses of Bluebeam software in conjunction with Housing. This R $ 1,300 $ 217 $ 1,083 Y software provides robust, user -definable markup tools and templates to improve the quality and consistency of interactions with developers, contractors and property owners. - Planning Services Additional meeting room fees for the Development Review Team R $ 1,200 $ 677 $ 523 N (DIRT). The DIRT has outgrown its space (Conference Room A) and needs a larger location. The request is to use the Jule Operating Training Center (JOTC). The JOTC has free parking, ADA accessibility, virtual meeting room capability, and a large space to conduct a meeting without being overcrowded. Department Description Recurring/Non- ADDL ADDL Net Tax MVM Recurring Expense Revenue Impact Y/N Planning Services Purchase of a computer tablet with a case/keyboard and data plan to R $ 360 $ 203 $ 157 N be used by the Planning Technician (PT). This would allow access of necessary info during meetings, reducing copying (paper waste), ability to attend meetings remotely, and take photos/videos that helps with documenting inspections for use in staff reports for the Zoning Board of Adjustment and Zoning Advisory Commission. Planning Services Sending the Assistant Planner to Leadership Dubuque. By R $ 1,525 $ 860 $ 665 N participating in Leadership Dubuque, the Assistant Planner will learn more about our community resources, government, businesses, and educational opportunities along with the impact of economic development on the community, enhance leadership skills, exchange ideas and experiences, both formally and informally, meet and build relationships with other leaders from many different segments of our society, and develop new business contacts within and through the group Planning Services Increase fees for flood plain permit, minor and simple site plans, sign R $ 1,380 $ (1,380) Y permit reviews, temporary use permits, and zoning letters to accurately reflect the cost of service after deep analysis of current costs. These changes will create an additional $1,380 in revenue each year. Public Information Office The addition of 1.00 FTE (GE-33) GIS Developer. This position is R $ 100,509 $ 56,707 $ 43,802 N essential for creating, customizing, and maintaining GIS applications, and will work with all city departments. These applications require a significant amount of customization, keeping the GIS Coordinator/Analyst from other duties. Public Information Office The addition of 1.00 FTE (GE-30) GIS Applications Specialist. The R $ 87,698 $ 49,479 $ 38,219 N number of GIS application and data requests continues to rise as GIS further embeds itself as a mission critical resource. Neither the GIS Coordinator/Analyst or GIS Applications Specialist can keep up with the needs of all departments. Public Information Office The addition of a 1.00 FTE (GE-30) GIS Data Analyst to the GIS R $ 87,698 $ 49,479 $ 38,219 N (Geographic Information System) Office. This position will manage and analyze spatial data for all city departments, reducing redundancy and improving efficiency. Data analysis continues to demand more time Department Description Recurring/Non- ADDL ADDL Net Tax MVM Recurring Expense Revenue Impact Y/N Public Works Maintenance Supervisors and Equipment Operator II's to receive their R $ 1,798 $ 1,798 OSHA Workplace Safety certification to increase safety in the field and on-the-job. Four certifications per year will ensure all employees in these positions can complete the certification within 3 years and repeat the certification every 3 years. Public Works Equity perspective training for department staff and allows for training R $ 15,000 $ 15,000 N to be specific to where each employee is in their Diversity, Equity, Inclusion, & Belonging (DEIB) journey. Recreation Implement a Park Ambassador program at Comiskey park, which R $ 22,203 $ 22,203 N includes creating new temporary Park Ambassador positions (net increase of 0.37 FTEs after offsets, NA-25) as well as purchasing office equipment and supplies. Net reduction of 0.47 FTEs in various temporary positions to help offset. Recreation As hiring is still expected to be a challenge in future years, this request R $ 25,000 $ 25,000 N seeks to increase the Recreation advertising line item by $25,000 on a recurring basis. Recreation The addition of $2,200 in education funding for the Lead R $ 2,200 $ 2,200 N Administrative Assistant position. This position has not previously been provided with education funds. Recreation A $700 increase in education funding for two supervisor positions and R $ 3,600 $ 3,600 N $2,200 in education funding for the new Business Development Manager. Funding is necessary for the staff to attend high quality continuing education opportunities due to increased travel costs. Recreation Additional golf course revenues through a $10 increase on all season R $ — $ 1,960 $ (1,960) Y passes. This increase is golf revenue will help offset rising operating costs. Recreation St. Mark has witnessed growth in the need for after school programs R $ 40,000 $ 40,000 N and anticipates reaching 10 additional students in the 2024-2025 Dubuque after school program. City of Dubuque funding will come at a critical time to build greater capacity within St. Mark TOTAL GENERAL FUND RECURRING PACKAGES $ 2,319,362 $ 489,683 $ 1,829,679 SUMMARY OF ALL DECISION PACKAGES WITH PROPERTY TAX IMPACT FISCAL YEAR 2025 Department Description R/N ADDL ADDL Net Tax MVM Expense Revenue Impact Y/N NON -RECURRING DECISION PACKAGE COSTS Airport For 2 additional aircraft baggage carts. Currently, we only have N $ 15,000 $ 15,000 Y 5 baggage carts for 737 aircraft, with up to 189 passengers on each flight. If there is a delay in departure, staff need to unload a cart that has already been loaded in order to be able to use it. City Manager's Office Fund the extension of the current ViDL Solutions department N $ 93,000 $ 15,503 $ 77,497 Y manager training to all City staff. City Manager's Office Funding to update the 2011 Urban Forest Evaluation. To N $ 37,500 $ 24,281 $ 13,219 N assess the remainder to the city, funding is requested to include a city-wide assessment. N $ — City Manager's Office Outreach, education, and empowerment activities related to N $ 18,750 $ 3,126 $ 15,624 Y the Climate Action Plan (CAP), specifically focusing on energy equity in buildings and housing. City Manager's Office Establishing bike infrastructure policies, executing a cross- N $ 26,450 $ 17,126 $ 9,324 N departmental implementation agenda, and creating and executing an alternative transportation education and communication campaign. City Manager's Office Partner with the local realty board to bring in a trainer to N $ 6,958 $ 4,505 $ 2,453 N provide Green Designation training for local realtors. Sustainability staff would work with the local board of realtors to localize the information and talk about the resources available City Manager's Office The creation of a permanent Climate Action Coordinator N $ — $ — $ — N position, which currently exists as a limited -term position. The limited term position was budgeted to run through FY 2025 and the new permanent position being requested for FY 2025 is at the same pay range and FTE status, this would have a net cost of $0 in FY 2025 (FY25 has non recurring savings). The additional, recurring cost of funding this position beyond the original limited -term timeframe would not be present until FY 2026. Community Impact Work from home equipment for Community Impact staff (5 N $ 4,250 $ 4,250 Y employees). Department Description R/N ADDL ADDL Net Tax MVM Expense Revenue Impact Y/N Conference Center This improvement package request provides for the addition of N $ 27,300 $ 27,300 N (Grand River Center) 10 cameras in the public areas of GRC. No security cameras are in the public space, entrances or exits. This project includes cameras, cabling and installation. Economic Development Purchase of 3 additional brochure holders to be placed on the N $ 1,650 3 existing Art on the River kiosks, additional printing costs for the brochures and translation services. These holders are for the purpose of adding new brochures in Spanish with the intent to be more inclusive of Dubuque's diverse population. Engineering Upgrade an existing small car to a pickup truck. For the N $ 17,000 functional use of vehicles in the Engineering Department, a pickup truck will provide the most versatility. Engineering The addition of one full-time HVAC Technician position (1.00 N $ 2,912 FTE, OE-16) to provide HVAC repair, Boiler repair, and Backflow testing services to all city Departments. Contractors are currently used for this work, and if funded, the need for contracts would decrease significantly. The expense of the position would be offset by cost saving from hiring contracts less fequently, and the true cost savings would be realized in future years. Office of Equity and Billboard rental in the North End that targets minority and low- N $ 5,800 Human Rights income residents to advertise the existence of the department and how/why to file a discrimination complaint. There has been a 44% decrease in inquiries since 2019, and data would be collected to track the billboard's effectiveness. Fire Additional computer for new Bureau Chief position. Grow the N $ 4,650 department's EMS Division to provide support for an expanding service by adding (1.0 FTE, GE-50) Bureau Chief position. Approximately 80% of the department's 8,000 incidents are EMS -related. The previous structure of managing the EMS Division with one member is beyond capacity. Fire Purchase of pre -plan software that is integrated with CAD N $ 8,650 (computer aided dispatch) software. Currently, the pre -plan information is created as separate, manually -created files stored separate from the response files. Year 1 cost with implementation is $8,650, year 2 is $8,242, year 3 is $8,654 followed by a 5% increase in price each year moving forward. Fire Upgrade the advanced airway equipment from traditional, N $ 7,816 hand-held laryngoscopes to the advanced video laryngoscope technology. The move to video laryngoscopes provides enhanced visualization and increase the success rates of field intubation and securing a patent airway for our patients. $ 1,650 N $ 17,000 Y $ 2,912 N $ 5,800 Y $ 4,650 Y $ 8,650 y $ 7,816 Y Department Description R/N ADDL ADDL Net Tax MVM Expense Revenue Impact Y/N Fire Seal the floor in the basement of Fire Station 6. The funding N $ 9,500 $ 9,500 Y will also allow the floor to be painted and flake applied which will brighten and clean the space for firefighters to continue to utilize. Fire A 48" lawn mower at Fire Station 2 for the regular upkeep of N $ 11,000 $ 11,000 Y the land around the station. The mower will reduce the workload and improve ergonomics with landscaping requirements throughout the year. Fire Neighborhood graphics to be placed on the back of each N $ 1,000 $ 1,000 Y suppression vehicle to acknowledge and recognize the specific neighborhoods they represent. Health Services A stand-up desk unit for an Environmental Sanitarian. The N $ 463 $ 463 Y Environmental Sanitarian spends several hours of the day in a sitting position at the computer writing reports and attending meetings and often multi hour-long trainings. The ability to stand at your desk offers great relief to your back and shoulders and adds to productivity and alertness and overall physical well-being Health Services purchase six chairs to accompany an existing conference table N $ 3,000 $ 3,000 Y in the Economic Development office. Health Services often has business owners bringing in food license applications and blueprints. Due to the volume of paperwork needed, there is a need for space to spread them out. We also need a spot that will seat 7 people for staff meetings. Health Services to fund the purchase of 6 new live traps. Approximately one- N $ 700 $ 700 Y third of trap requests cannot be fulfilled currently. The estimated revenue for trap rental is $480 per year. This project assists in removing barriers associated with low-income communities and contributes towards the evaluation of fines, fees, and rate structure. The revenue generated could be directly allocated to the low-income portion of our community. Housing Two 55' digital plan review tables. Digital plan review tables N $ 33,400 $ 33,400 Y streamline the plan review process by allowing inspectors to navigate, annotate, and share plans swiftly and efficiently. When used with Bluebeam software, immediate updates ensure that all team members work with the most current version of the plan, eliminating potential delays and confusion. Housing Provide for (1) City of Dubuque logo hardhat and a hi -visibility N $ 700 $ 700 Y jacket for each building inspector. This will help identify the building inspectors to the contractors and create a more professional appearance for our department. Human Resources A temporary Scanning Clerk position (0.50 FTE, GE-25A). N $ 25,350 $ 4,226 $ 21,124 Y This position was funded through a non -recurring improvement package in the FY 2022 budget, but the position was not filled, and the funds were not carried over to future fiscal years. Department Description Human Resources Non -Recurring portion of purchase a Human Resources Information System (HRIS), which is a software solution that includes all aspects of managing the employee database and directory, applicant tracking, benefits administration, payroll processes, work scheduling/time and attendance, leaves tracking, compliance protocols, customizable insight reports, employee self-service, performance management, and HR processes accessible and managed on mobile apps. Also has a recurring portion R/N ADDL ADDL Net Tax MVM Expense Revenue Impact Y/N N $ 75,750 $ 12,628 $ 63,122 Y Information Technology Computer and Technology Portion of this package. This N $ 3,300 improvement package is for the creation of a new User Technology Specialist under the Information Technology (IT) department (1.00 FTE, GE-29). As the City organization continues to grow, so does the demand for IT infrastructure and support services. There is an alternative proposal to upgrade an existing position to this new position. Information Technology Enhance employee well-being and increase productivity by providing ergonomically designed chairs and standing desks to the staff or the new office that the Information Technology department is moving to in 2024. Information Technology Replace the old model emergency radio in the Information Technology (IT) department that is at the end of it's useful life with the current model that is being used by Police and Fire. Legal The creation of a full-time Assistant City Attorney I position (1.0 FTE, GE-37) within the City Attorney's Office. Creation of this position will facilitate a succession plan for the individual to become familiar with the organization and processes in the City. The goal is to grow and develop the individual hired to take on more responsibility and duties, allowing for efficiencies and reduced response times and better balanced workload for the City Attorney's Office. N $ 20,000 N $ 5,110 $ 3,300 N $ 20,000 Y $ 5,110 Y N $ 127,265 $ 97,729 $ 29,536 N Library This improvement request is for a one-time upgrade to N $ 13,000 $ 13,000 Y improve virtual meeting technology in the Library's Eigler Auditorium. The current set up for the Auditorium is not ideal for hybrid in-person/virtual meetings. Department Description R/N ADDL Expense ADDL Net Tax MVM Revenue Impact Y/N Parks 4 additional desktop computers for the Park Division. Three N $ 8,800 $ 8,800 Y computers would be for functional supervisors that do not have a desktop computer. An additional computer would be a multi- user computer for Park Division staff. Parks A utility vehicle for use at Veterans Memorial Park, there is a N $ 23,000 $ 23,000 Y shortage of utility vehicles to perform efficiently as a department.. Parks Purchase of a plate compactor and jumping jack compactor. N $ 7,000 $ 7,000 Y Staff have needed to rent a plate compactor and jumping jack for many of these projects. Parks Purchase of a dump trailer for the Forestry activity in the Park N $ 15,000 $ 15,000 Y Division. The Forestry activity does not have a trailer. Parks Purchase of a tow -behind prairie mower for the Park Division. N $ 4,000 $ 4,000 Y This piece of equipment would offset the cost of hiring a contractor to mow smaller prairie areas. Parks Purchase a remote -controlled mower. There are numerous N $ 70,000 $ 70,000 Y steep slopes that staff mow including turf and prairie areas. This mower would reduce the risk of injury from mowing these areas with staff on riding mowers. Planning Services Additional laptop for staff who need to work remotely for work N $ 2,400 $ 400 $ 2,000 Y because of illness/Covid, conference attendances, board/commission presentations, etc. Section 9.12 notes that approved telecommuters will be provided the tools and applications for access to city technology resources, and City employees cannot use personal devices. Planning Services Purchase of City of Dubuque shirts. The embroidered N $ 480 $ 80 $ 400 Y polo/shirts help clearly identify Planning Staff at public meetings/events and help clearly identify the Zoning Enforcement Officer as a city official with inspecting property and interacting with the public. Planning Services Sending the Planning Technician to Dale Carnegie training N $ 2,350 $ 1,326 $ 1,024 N which will help develop and build on confidence and personal leadership competence, strengthen skills in relating to others and build inclusivity, enhance skills to communicate logically, clearly, and concisely, energize and engage listeners, learn to listen with empathy, develop leadership skills to be more flexible and innovative, inspire and motivate others to action, and empower them to control attitudes and reduce stress so they can be at their optimum best. Police To conduct a building and space study. The City is currently N $ 50,000 $ 50,000 N leasing space through maintenance agreements and cost/space sharing, and in 1971, the Police Department had only half the employees they have today. There is currently no place to take citizens for a private conversation. To help with the problem, SRO's have moved, and E911 is moving out of the building. Department Description R/N ADDL ADDL Net Tax MVM Expense Revenue Impact Y/N Public Information Office Computer and iPad for the addition of 1.00 FTE (GE-33) GIS N $ 4,795 $ 2,705 $ 2,090 N Developer. This position is essential for creating, customizing, and maintaining GIS applications, and will work with all city departments. These applications require a significant amount of customization, keeping the GIS Coordinator/Analyst from other duties. Public Information Office Computer and iPad for the addition of 1.00 FTE (GE-30) GIS N $ 4,795 2705 $ 2,090 N Applications Specialist. The number of GIS application and data requests continues to rise as GIS further embeds itself as a mission critical resource. Neither the GIS Coordinator/Analyst or GIS Applications Specialist can keep up with the needs of all departments. Public Information Office Computer and iPad for the addition of a 1.00 FTE (GE-30) GIS N $ 4,795 $ 2,705 $ 2,090 N Data Analyst to the GIS (Geographic Information System) Office. This position will manage and analyze spatial data for all city departments, reducing redundancy and improving efficiency. Data analysis continues to demand more time Public Information Office Office space remodeling to accommodate new GIS N $ 25,000 $ 14,105 $ 10,895 N (Geographic Information System) Office positions. The current GIS staff setup does not allow for additional staffing, nor collaboration space for project management. Public Works Hire a consultant to review departmental plans, policies, and N $ 17,500 $ 17,500 Y procedures to combat systematic inequities Public Works A current employee to receive an applicator's license and N $ 12,000 $ 12,000 Y certification and provides funding for an off -road, slide -in applicator for the Port of Dubuque in accordance with the United States Army Corps of Engineers Engineering Technical Letter (110-2-583), which requires the removal of unacceptable growth within the "vegetation -free zone." Public Works Conversion of all computers in Public Works to be switched to N $ 800 laptop setups. This would occur through attrition and would allow office staff to collaborate, train and present more easily. Public Works Replacement of the arts & culture sculpture at the Municipal Services Center that was moved a number of years ago. Public Works would like to replace this sculpture from the Art on the River program to support local artists and arts and culture in the community Recreation Computer & technology portion of this package. Implement a Park Ambassador program at Comiskey park, which includes creating new temporary Park Ambassador positions (net increase of 0.37 FTEs after offsets, NA-25) as well as purchasing office equipment and supplies. Net reduction of 0.47 FTEs in various temporary positions to help offset. N $ 15,000 N $ 3,660 $ 800 Y $ 15,000 N $ 3,660 N Department Description C710 W_101531 Recreation The installation of a network switch at the McAleece Park. The N $ 11,000 Information Technology department recommended the installation Recreation Funding to continue the expansion of the scholarship program N $ 8,900 for the Leisure Services Department. This request for additional recurring funding in FY 2025 and beyond will allow the department to continue to offer 300 $150 scholarships to income -qualifying families. Requested as recurring for $20,000. Recommended as non -recurring for $8,900. ADDL Net Tax MVM Revenue Impact Y/N $ 11,000 Y $ 8,900 Y TOTAL GENERAL FUND NON -RECURRING PACKAGES 898,499 203,149 695,350 $3,217,861 $692,832 $2,525,029 SUMMARY OF ALL DECISION (IMPROVEMENT) PACKAGES FOR NON -PROPERTY Fiscal Year 2025 Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No LIBRARY TRUST FUND This improvement request is for a part time (.50 FTE, GE-28) Marketing Coordinator position to be added to Administration activity and the General Fund. This position currently exists, but Library is paid out of the Library Trust fund. R $ (38,918) $ (38,918) N Subtotal Library Trust Fund $ (38,918) $ — $ (38,918) MEDIA SERVICES FUND This improvement package request is for a online form solution to accept electronic form submittals for grant and assistance Public Information applications, some licenses and permits, resident feedback, and Office more through the City website. R $ 15,000 $ 15,000 N N $ 5,000 $ 5,000 N Public Information This improvement package request is integrate an artificial Office intelligence (AI) -based chat solution into the City website to offer the option of automated customer service. This service would provide smart text messaging, web chat, and interactive text alerts for residents and stakeholders. R $ 16,650 $ 16,650 N N $ 7,990 $ 7,990 N Subtotal Medial Services Fund $ 44,640 $ — $ 44,640 GARAGE SERVICE FUND Public Works Maintenance Supervisors and Equipment Operator ll's to R $ 899 $ 899 y receive their OSHA Workplace Safety certification to increase safety in the field and on-the-job. Four certifications per year will ensure all employees in these positions can complete the certification within 3 years and repeat the certification every 3 years. Public Works Conversion of all computers in Public Works to be switched to N $ 600 $ 600 laptop setups. This would occur through attrition and would allow office staff to collaborate, train and present more easily. y Subtotal Internal Service Fund $ 1,499 $ — $ 1,499 ENTERPRISE FUNDS Stormwater Fund Upgrade the scheduled FY 2025 replacement of a current Engineering Staff computer from a desktop to an engineering Engineering laptop. N $ 1,200 $ 1,200 N Engineering Engineering and Housing to hold a joint annual meeting R $ 1,667 $ 1,667 N intended for area contractors for the purpose of educating attendees on updates to building codes and specifications. Split up among the general fund, Stormwater, and Sanitary Sewer. Parks Adding one full-time Maintenance Technician position (1.00 FTE, GD-06) assigned to the Bee Branch Creek Greenway area. Partially offset by eliminating 0.11 FTE from temporary Parks Groundskeeper positions and also eliminating 0.50 FTE from the temporary Landscape Crew Member positions. R $ 75,760 $ 75,760 N R R R R Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No R R R Subtotal Stormwater Fund $ 78,627 $ — $ 78,627 Water Fund A vehicle for the use of the maintenance and administrative staff at the Eagle Point Water Treatment Plant. A third vehicle will reduce the wait and response time for maintenance and administrative staff to perform their work and improve overall Water efficiency within the group. N $ 78,000 $ 78,000 N Subtotal Water Fund $ 78,000 $ — $ 78,000 ROAD USE TAX FUND Public Works Adding a (1.00 FTE, GD-05) Utility Worker. This position would R $ 82,777 provide flagger safety to street and sewer maintenance operations and help ensure safe roads traveled in the winter during snow and ice operations. As maintenance programs have expanded and infrastructure requirements have increased, flaggers on job sites should be used. Public Works Adding a (1.00 FTE, GD-05) Utility Worker. This position would provide flagger safety to street and sewer maintenance operations and help ensure safe roads traveled in the winter during snow and ice operations. As maintenance programs have expanded and infrastructure requirements have increased, flaggers on job sites should be used. R $ 82,777 Public Works Maintenance Supervisors and Equipment Operator II's to receive their OSHA Workplace Safety certification to increase safety in the field and on-the-job. Four certifications per year will ensure all employees in these positions can complete the certification within 3 years and repeat the certification every 3 years. R $ 3,596 82.777 82,777 M N 3,596 N Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No Public Works Street assessment software that identifies defect types and street types. This is data we have historically received from the Department of Transportation (DOT) every other year; however, the DOT has now decreased the frequency of condition rating to every five years. For the age of our infrastructure, this is too large of a gap to rely on for maintenance. R $ 17,000 $ 17,000 N N $ 3,500 $ 3,500 N Public Works Single point operation point monitoring devices, which can be utilized on construction sites, snow and ice operations, flood monitoring, and more. This allows for notifications to be sent if an unexpected operational concern arises and also allows for remote monitoring. R $ 16,500 $ 16,500 N Subtotal Road Use Tax Fund $ 206,150 $ — $ 206,150 Sanitary Sewer Fund Engineering Engineering and Housing to hold a joint annual meeting R $ 1,667 intended for area contractors for the purpose of educating attendees on updates to building codes and specifications. Split up among the general fund, Stormwater, and Sanitary Sewer. Purchase and installation of 5 additional cameras and 4 additional viewing stations, which would provide additional coverage to areas of high activity, including the administration building entrance and lobby, the drying pad, and the alleyway WRRC between the maintenance shop and solids processing building R $ 325 N $ 19,000 Additional mobile devices (10 smart phones with data), desktop computers (3), and laptop computers (2) to improve staff connectivity and create efficiencies in process and communication. The devices will allow staff to readily access e- mail, the WRRC Water Information Management system (WIMS), time entry application, and additional applications as WRRC necessary. R $ 6,240 N $ 16,340 Three tablet computers, a Wi-Fi router, and laboratory information management software to transition from paper - based recordkeeping to digital. This will help in streamlining laboratory operations, accelerating access to vital operational data, and improving responsiveness to clients, including the WRRC Water Department. R $ 2,380 N $ 17,000 Two additional vehicles dedicated to conducting facility inspections for the City's Industrial Pretreatment and FOG (fats, oils, and grease) programs. The establishment of the new position of Industrial Pretreatment Coordinator requires an additional vehicle, and the position of Environmental Coordinator currently uses a vehicle that was scheduled to be traded in and WRRC was temporarily retained to meet transportation needs. N $ 75,000 $ 1,667 N $ 325 Y $ 19,000 Y $ 6,240 Y $ 16,340 Y $ 2,380 Y $ 17,000 Y $ 75,000 Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No Purchase of a compact track loader and attachments, including light materials bucket, pallet forks, angle broom, rotary cutter, and snow pusher. This improvement replaces an existing 1994 John Deere 410D backhoe/loader and provides increased functionality to the W&RRC, including moving snow, sweeping hard surfaces, mowing rough areas, and moving bulk materials WRRC and debris. N $ 90,000 $ 90,000 An electric scissors lift with a minimum platform height of 32 feet, intended to replace an existing single vertical mast boom lift. The inclusion of the scissors lift is aimed at eliminating the need for rental units and providing our plant staff with the means to easily conduct maintenance on rooftop HVAC units, yard lighting and cameras, as well as indoor lighting and ventilation WRRC equipment. N $ 30,000 $ 30,000 Cleaning the four anaerobic digesters on a rolling basis, allowing each to be cleaned once every four years. Periodic cleaning of the anaerobic digesters is essential for preventing operational issues, maintaining efficiency, and ensuring compliance with environmental regulations. Regular maintenance helps extend the lifespan of the digesters, promotes consistent biogas production, and reduces the likelihood of undesirable side WRRC effects such as foaming and odors. R $ 75,000 $ 75,000 Y Purchase of chemicals to be used at the Water Resource & Recovery Center to reduce odor emissions and the formation of struvite within the waste stream. An ongoing analysis determined that dosing the waste stream with hydrogen peroxide and ferric chloride could reduce hydrogen sulfide (1-12S), the most prevalent odor -causing compound in WRRC wastewater, and struvite. R $ 462,000 $ 462,000 Y Increasing tipping fees charged for hauling and disposing high strength waste, septage, and FOG (fats, oils, and grease). The fee increases will help offset the cost of providing the requisite infrastructure to handle and treat the waste without causing compliance issues with the Clean Water Act (CWA) permit WRRC requirements. R $ — $ 346,956 $ (346,956) Subtotal Sanitary Sewer Fund $ 794,952 $ 346,956 $ 447,996 Solid Waste Fund Public Works Maintenance Supervisors and Equipment Operator II's to R $ 899 $ 899 N receive their OSHA Workplace Safety certification to increase safety in the field and on-the-job. Four certifications per year will ensure all employees in these positions can complete the certification within 3 years and repeat the certification every 3 years. Public Works Deploying 15,000, 64-gallon carts for all customers who do not have a city -issued 96-gallon recycling cart, with a smaller option provided for those who cannot physically wheel a larger cart. If approved, The Recycling Partnership (TRP), a national non- profit, would contribute $250,000, covering approximately 37% of the estimated $675,000 cost of carts. It is also estimated that this change can cut costs by about $30,000 every year. N $ 675,000 $ 250,000 $ 425,000 N R $ — $ 30,000 $ (30,000) N Subtotal Solid Waste Fund $ Department Description R/N ADDL ADDL Net Tax Impact MVM Expense Revenue Yes/No Public Works Purchase of a three -quarter -ton standard cab truck with a salt N $ 85,000 $ 85,000 box and plow blade for maintaining the roadways and parking lots at at the Customer Convenience Center. Public Works Smart phone for use by the Environmental Technician and the N $ 350 $ 350 monthly services costs associated with the purchase. The Environmental Technician is the primary contact for businesses wishing to schedule disposal of a -scrap and very small quantity generator waste, for mobile collection events, and residents who have questions related to household hazardous material and e- scrap disposal. R $ 624 $ 624 Y Public Works A litter collection vehicle, which would be utilized to collect N $ 120,000 $ 120,000 Y windblown litter along the landfill cells portable and permanent fencing, along Airborne Road, and other areas on -site. Staff has researched several options and has determined that an off -road capable, four-wheel drive vehicle that allows the operator to remain in the cab while collecting the litter via a controller - operated vacuum provides the most operational flexibility and increases operator safety. Public Works With the volume of non-commercial customers accessing the N $ 25,000 $ 25,000 Y agencies services expected to increase when the Customer Convenience Center tentatively opens in Spring 2025, staff is requesting funding to hire a consultant to evaluate the current staffing allocations and determine if additional staffing is needed immediately or what service level increases should trigger staffing additions or reallocation. Public Works The Solid Waste Agency Administrator and the Solid Waste R $ 1,400 $ 1,400 Y Facility Supervisor to attend one of the two Badger SWANA (Solid Waste Association of North America) events in Wisconsin each year. With approximately 20-30% of the Agency's municipal solid waste tonnage coming from the state of Wisconsin, staff attendance at the event would provide educational and networking opportunities to understand the future plans for waste in Wisconsin, which would benefit multiple operational aspects of the facility. Public Works Purchase of a towed roller compactor which would be utilized to N $ 55,000 $ 55,000 Y smooth out temporary access roads and drop-off areas within the active landfill cell to improve overall access and convenience for customers/haulers. In addition, the roller would be used in other off -road areas of the landfill as needed to reduce pooling of water and improve drainage. Public Works Development of a landfill utility worker apprenticeship program. R $ 78,070 $ 78,070 Y The Landfill has been unable to recruit a diverse and qualified workforce for entry-level positions. The program will be developed by creating local partnerships with Iowa Works, NICC, union representatives and landfill field staff to take full advantage of training grants provided for this type of program. The program will provide the apprentice the education and experience opportunities necessary to prepare them to operate heavy equipment and the handling and package of hazardous materials and a -scrap used with typical Landfill operations. Subtotal Landfill Fund $ 365,444 $ — $ 365,444 TOTAL NON -PROPERTY TAX FUND PACKAGES $2,245,211 $626,956 $1,618,255 TOTAL IMPROVEMENT PACKAGES ALL FUNDS $5,463,072 $1,319,788 $4,143,284 Prepared by: Jennifer Larson CitV of Dubuque, 50 W. 1311 St. Dubuque, 1A 52001 563.589-4322 Return to: Jennifer Larson, City of Dubuque, 50 W. 1V St. Dubuque, 4A 52001, 563.589-4100 RESOLUTION NO. 55-24 SETTING A PUBLIC HEARING ON THE PROPOSED FISCAL YEAR 2025 TAX RATE AND DOLLARS AND TAXPAYER STATEMENTS Whereas, pursuant to State of Iowa Section 24.2A (4)(a) as adopted by Iowa HF718, the City of Dubuque is required to hold a public hearing to consider the proposed Fiscal Year 2025 city tax rate and dollars and taxpayer statements; and Whereas, the notice of hearing must be published not less than 10 days and not more than 20 days prior to the date of the hearing; and Whereas, at said hearing, the City Council is required to review the proposed tax notice for the Fiscal Year 2025 Tax Rate and Dollars and Taxpayer Statements. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: Section 1. The Dubuque City Council will conduct a public hearing on March 25, 2024 at 6:30 p.m. at City Council Chambers, 350 W 51h St. and virtually. Section 2. The Chief Financial Officer is hereby directed to prepare a Notice of Public Hearing on the proposed Fiscal Year City Property Tax Levy with the required information pursuant to Section 24.2A (4)(a) as adopted by Iowa HF718, Section 3, The City Clerk is hereby directed to publish the notice of public hearing pursuant to Section 24.2A (4)(a) as adopted by Iowa HF718. Passed, adopted and approved this 7th day of March, 2024. Ric W. Jori ayor Pro Tern Attest: Adrienne N. Breitfelder, City Clerk 3/6/24, 9:41 AM Local Government Property Valuation System CITY NAME: NOTICE OF PUBLIC HEARING - CITY OF DUBUQUE - PROPOSED PROPERTY TAX LEVY CITY #: 31-288 DUBUQUE Fiscal Year July 1, 2024 - June 30, 2025 The City Council will conduct a public hearing on the proposed Fiscal Year City property tax levy as follows: Meeting Date: 3/25/2024 Meeting Time: 06:30 PM Meeting Location: City Council Chambers, 350 W 6th St. At the public hearing any resident or taxpayer may present objections to, or arguments in favor of the proposed tax levy. After the hearing of the proposed tax levy, the City Council will publish notice and hold a hearing on the proposed city budget. City Website (if available) City Telephone Number https://www.citvofdubuque.org/85/Budget (563) 589-4398 Iowa Department of Management Current Year Certified Property Tax 2023 - 2024 Budget Year Effective Property Tax 2024 - 2025 Budget Year Proposed Property Tax 2024 - 2025 Taxable Valuations for Non -Debt Service 2,613,397,595 2,768,051,830 2,768,051,830 Consolidated General Fund 21,168,521 21,168,521 21,981,598 Operation & Maintenance of Public Transit 1,507,120 1,507,120 1,913,222 Aviation Authority 0 0 0 Liability, Property & Self Insurance 558,274 558,274 1,405,063 Support of Local Emergency Mgmt. Comm. 0 0 0 Unified Law Enforcement 0 0 0 Police & Fire Retirement 0 0 0 FICA & IPERS (If at General Fund Limit) 2,387,496 2,387,496 1,946,134 Other Employee Benefits 0 0 0 Capital Projects (Capital Improv. Reserve) 0 0 0 Taxable Value for Debt Service 3,055,076,501 3,410,562,613 3,410,562,613 Debt Service 297,809 297,809 284,236 CITY REGULAR TOTAL PROPERTY TAX 25,919,220 25,919,220 27,530,253 CITY REGULAR TAX RATE 9.90135 9.34344 9.92637 Taxable Value for City Ag Land 3,392,501 3,420,763 3,420,763 Ag Land 10,190 10,190 10,275 CITY AG LAND TAX RATE 3.00368 2.97887 3.00375 Tax Rate Comparison -Current VS. Proposed Residential property with an Actual/Assessed Value of $100,000 Current Year Certified 2023/2024 Budget Year Proposed 2024/2025 Percent Change City Regular Resident 541 460 -14.97 Commercial property with an Actual/Assessed Value of $100,000 Current Year Certified 2023/2024 Budget Year Proposed 2024/2025 Percent Change City Regular Commercial 541 460 -14.97 Note: Actual/Assessed Valuation is multiplied by a Rollback Percentage to get to the'1'axable Valuation to calculate Property 'taxes. Residential and Commercial properties have the same Rollback Percentage at $100,000 Actual/Assessed Valuation. Reasons for tax increase if proposed exceeds the current: The City of Dubuque has experienced increased cost in insurance including workers compensation, general liability, and property insurance. In addition, increase cost in equipment replacements, employee expense, utility expense, and overall supplies and services have been projected. https:Hdom-localgov.iowa.gov/budget-renderer?id=17535 1/2 3/6/24, 9:41 AM Local Government Property Valuation System https:Hdom-localgov.iowa.gov/budget-renderer?id=17535 2/2 3/5/24, 4:48 PM Local Government Property Valuation System FISCAL YEAR JULY 1, 2024 - JUNE 30, 2025 ADOPTION OF BUDGET AND CERTIFICATION OF CITY TAXES The City of: DUBUQUE County Name: DUBUQUE COUNTY Adopted On: (entered upon adoption) Resolution: (entered upon adoption) The below -signed certifies that the City Council, on the date stated above, lawfully approved the named resolution adopting a budget for next fiscal year, as summarized on this and the supporting pages. Attached is Long Term Debt Schedule Form 703 which lists any and all of the debt service obligations of the City. With Gas & Electric Without Gas & Electric 2,768,051,830 City Number: 31-288 3,410,562,613 Last Official Census: 59,667 Regular 2a 2,837,887,310 2b DEBT SERVICE 3a 3,480,398,093 3b Ag Land 4a 3,420,763 Consolidated General Fund Levy Calculation CGFL Max Rate CGFL Max Dollars Non-TIF Taxable w/ G&E Taxable Growth % FY 2024 Budget Data 8.10000 21,744,505 2,684,506,784 5.71 Limitation Percentage 2 CGFL Max Rate CGFL Max Dollars Revenue Growth % Max Allowed CGFL for FY 2025 7.94118 22,536,174 3.64 TAXES LEVIED Code Sec. Dollar Limit Purpose ENTER FIRE DISTRICT RATE BELOW (A) Request with Utility Replacement (B) Property Taxes Levied (C) Rate 384.1 7.94118 Consolidated General Fund 5 22,536,174 21,981,598 43 7.94118 Non -Voted Other Permissible Levies 384.12(1) 0.95000 Opt & Maint publicly owned Transit 7 1,961,488 1,913,222 45 0.69118 384.12(2) 0.27000 Aviation Authority (under sec.330A.15) 11 0 49 0.00000 384.12(3) Amt Nee Liability, property & self insurance costs 14 1,440,514 1,405,063 52 0.50760 384.12(5) Amt Nee Support of a Local Emerg.Mgmt.Comm. 462 0 465 0.00000 Voted Other Permissible Levies 28E.22 1.50000 Unified Law Enforcement 24 0 62 0.00000 Total General Fund Regular Levies (5 thru 24) 25 25,938,176 25,299,883 384.1 3.00375 Ag Land 26 10,276 10,275 63 3.00375 Total General Fund Tax Levies (25 + 26) 27 25,948,452 25,310,158 Do Not Add Special Revenue Levies 384.6 Amt Nee Police & Fire Retirement 29 0 0.00000 Arm Nee FICA & IPERS (if general fund at levy limit) 30 1,995,236 1,946,134 0.70307 Rules Amt Nee Other Employee Benefits 31 0 0.00000 Subtotal Employee Benefit Levy (29,30,31) 32 1,995,236 1,946,134 65 0.70307 Valuation 386 As Req With Gas & Elec Without Gas & Flee SSMID 1 (A) 0 (B) 0 34 0 66 0.00000 SSMID2 (A) 0 (B) 0 35 0 67 0.00000 SSMID3 (A) 0 (B) 0 36 0 68 0.00000 SSMID4 (A) 0 (B) 0 37 0 69 0.00000 SSMID 5 (A) 0 (B) 0 555 0 565 0.00000 SSMID6 (A) 0 (B) 0 556 0 566 0.00000 SSMID7 (A) 0 (B) 0 1177 0 1179 0.00000 SSMID8 (A) 0 (B) 0 1185 0 1187 0.00000 Total Special Revenue Levies 39 1,995,236 1,946,134 384.4 Amt Nee Debt Service Levy 76.10(6) 40 290,069 284,236 70 0.08334 384.7 0.67500 Capital Projects (Capital Improv. Reserve) 41 0 71 0.00000 Total Property Taxes (27+39+40+41) 42 28,233,757 27,540,528 72 9.92637 COUNTY AUDITOR - I certify the budget is in compliance with ALL the following: Budgets that DO NOT meet ALL the criteria below are not statutorily compliant & must be returned to the city for correction. ( City Representative ) ( Date ) ( County Auditor ) ( Date ) https:Hdom-localgov.iowa.gov/budget-renderer?id=17535 1/1 THE CITY OF Masterpiece on the Mississippi Setting the Pubiic hearing on Proposed Fiscal Year 2025 Property Tax Levy March 7, 2024 11 Budget Development Guidance THE C DUUB---*-TE Masterpiece on the Mississippi 1. City Council Goals & Priorities 2. Major CIP Projects 3. Leveraging Federal & State Grants 4. Public Safety 5. Streets 2 Proposed Property Tax Rate THE C DUUB---*-TE Masterpiece on the Mississippi 3 Proposed Propety Tax Levy THE C DUUB---*-TE Masterpiece on the Mississippi Om25% $OmO2 Property Tax Rate Property Tax Asking 6m01% $1,600,181 Avg. Residential Property 5m00% $4015 Avg. Commercial Property 25m55% $85Om63 Avg. Industrial Property 189% $18733 r,I City Property Tax Rate Comparison $15.24 $15.63 $15.76 $9.93 $10.09 $10.53 $11.76 THE C DUUB---*-TE Masterpiece on the Mississippi $19.73 $16.25 $16.78 $17.56 $18.26 P O�5 J�• \o Waterloo = 98.8% higher than Dubuque Average = 53.5% higher than Dubuque 5 Significant Issues Impacting Budget Iowa House File 718 • March 15: Cities must file a report with Iowa THE C DUUB---*-TE Masterpiece on the Mississippi Department of Management containing information specified by new law to be contained in mailings. • March 20: County Auditor must send each property owner or taxpayer with the county by regular mail an individual statement with the specified information broken out by political subdivision comprising the taxpayer's district. ill Significant Issues Impacting Budget Iowa House File 718 March 25: Public Hearing on Pro Property Tax Amounts for FY202 taxpayer statements THE C DUUB---*-TE Masterpiece on the Mississippi posed 5 and • Must be separate from any other meeting *City Council can decrease, but not increase, proposed property tax amount for FY2025 Significant Issues Impacting DUB---*-TE BudgetMasterpiece on the Mississippi Iowa House File 718 Budget certification deadline to Iowa Department of Management is April 30th instead of March 31 st is If City has debt levy, budget must be adopted before April 15th n Significant Issues Impacting Budget THE C DUUB---*-TE Masterpiece on the Mississippi State -Funded Backfill on Commercial & Industrial Property Tax • Beginning in FY2023, the backfill will be eliminated over an 8-year period. • Projected backfill for Dubuque for the two- tier assessment limitation in FY2025 is estimated to be $576,898. Significant Issues Impacting Budgef Total State Backfill Payments to Dubuque E1,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 4 $600,000 $400,000 $200,000 THE C DUUB---*-TE Masterpiece on the Mississippi 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10 Significant Issues Impacting Budget Annual Loss of Tax Revenue from Multi-Residential Property Rollback $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 THE C DUUB---*-TE Masterpiece on the Mississippi wd pzlj'0+� WAKIWC� WaKIM, I The State of Iowa will not backfill property tax loss from the rollback on multi - residential property. The City will annually lose $1.2 million as a result. Dubuque's total revenue loss for rY17-FY24 = $5.63 million 11 THE C DUUB---*-TE HomesteadL Masterpiece on the Mississippi • HF718 created new exemption • 3,398 Homeowners filed for exemption • FY25 $3,250 in taxable value • FY26 $6,500 in taxable value FY2025 revenue reduction to City of $113,017 12 Military Exemption • HF718 changed Military Credit to Exemption • Increased from $1,852 to $4,000 • 1,937 Homeowners receive Military Exemption FY2025 revenue reduction to City of $76,918 THE C DUUB---*-TE Masterpiece on the Mississippi 13 Significant Issues Impacting Budget Revaluation of Residential and Commercial THE C DUUB---*-TE Masterpiece on the Mississippi •Average residential property value increased 23.2% •Average commercial property value increased 25% MI Significant Issues Impacting Budget Residential Rollback THE C DUUB---*-TE Masterpiece on the Mississippi Residential Rollback factor decreases from 54.65% in FY2024 to 46-34% in FY2025 *Impacts taxable value of residential and commercial/industrial impacted due to two-tier assessment limitation on first $1501000 15 Significant Issues Impacting Budget Riverfront Property Lease Revenue • Riverfront Property Lease revenue THE C DUUB---*-TE Masterpiece on the Mississippi increased $212,448 due to consumer price index increase to a total of $4,110,287 W Significant Issues Impacting Budget THE C DUUB---*-TE Masterpiece on the Mississippi Local Option Sales Tax *Increased from $12,528,806 in FY 2024 to $12,927,517 in FY 2025. The FY 2025 budget is based on FY 2024 actual plus 3%. • 50% to property tax relief, 50% to capital improvements (20% for maintenance of City buildings and 30% for street maintenance) 17 Significant Issues Impacting DUB---*-TE BudgetMasterpiece on the Mississippi Hotel Motel Tax Increased from $2,925,996 in FY 2024 to $3,376,383 in FY 2025. The FY 2025 budget is based on FY 2024 actual plus 3%. Significant Issues Impacting DUB---*-TE BudgetMasterpiece on the Mississippi July 2023: Moody's Upgrades City's Bond Rating • Moody's upgraded the City's outstanding general obligation bonds from Aa3 to Aa2, as well as the outstanding Sales Tax Increment Revenue bonds from A2 to Al. • "Notable credit factors include strong financial operations and ample revenue -raising flexibility, which has resulted in steadily improved available fund balance and cash. The City serves as a regional economic center and its regional economic growth rate has outpaced the nation over the past five years." 19 Significant Issues Impacting Budget FY 2025=2029 Capital Improvement THE C DUUB---*-TE Masterpiece on the Mississippi •Currently being reviewed and balanced, so there are no revised FY2025 debt projections available yet. W Reduction of Statutory Debt Limit Used (FY24 Adopted) THE C DUUB---*-TE Masterpiece on the Mississippi FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY231FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 21 Percentage of Staturory Debt Limit Utilized 23.6% 26.4% 15.8% 17.6% GAO ova oJ' G 40.7% 42.1 % 4 48.9% THE C DUUB---*-TE Masterpiece on the Mississippi 50.9/o 0 53.6% 56.1 % 0 63.0% 66.7% o�`oo 5 ` 05 ` 05 a o Des Moines = 64% higher than Dubuque — 5th LOWEST and BELOW the average. 22 Significant Issues Impacting Budget THE C DUUB---*-TE Masterpiece on the Mississippi General Fund Accrual Reserve Goal = 25% City's Spendable General Fund Cash Reserve Fund Balance % of Projected Revenue $2%65%518 41.97% $23,85%518 $18905%518 33.76% 25.56% $18,05%518 25.56% $%059,518 25.56% $%059,518 25.56% 23 Significant Issues Impacting DUB---*-TE BudgetMasterpiece on the Mississippi General Fund + Enterprise Accrual Funds Reserve Goal = 25% City's Spendable Moody's Reserve Fund Balance % of Projected Revenue $46, 304, 790 $40, 504, 790 $349704, 790 40.21% 35.17% 30-14% $349704J90 $34J047790 $34J041790 30-14% 30-14% Significant Issues Impacting DUB---*-TE BudgetMasterpiece on the Mississippi Recommended Wage Increases • 5% for Dubuque Police Protective Association and non -represented employees • 3% for already approved collective bargaining agreements for Teamsters • Dubuque Professional Fire Fighters Association and International Union of Operating Engineers in contract negotiations *Estimated cost to General Fund = $11942)693 25 THE Recommended New Public DUB---*-TE Safety Positions in FY2025 Masterpiece °° the Mississippi •Fire: additional captain to serve in capacity of field training officer/safety officer (Starting Aug. 1, 2024) - Recurring cost of $128,145 • Fire: bureau chief position for the EMS Division (Starting July 1, 2024) - Recurring cost of $164,,468. Non -recurring cost of $4,,650 26 Recommended Improvement Packages THE C DUUB---*-TE Masterpiece on the Mississippi For FY2025 there are $3,239,438 in general fund improvement packages with $888,840 recommended for funding. 27 Capital Improvement Program THE C DUUB---*-TE Masterpiece on the Mississippi Catfish Creek Sewershed Interceptor Sanitary Sewer Improvements $47 million total Capital Improvement Program THE C DUUB---*-TE Masterpiece on the Mississippi W RRC High Strength Waste $6.2 million total 29 Capital Improvement Program THE C DUUB---*-TE Masterpiece on the Mississippi W RRC Industrial Controls Update $3 million total 30 Capital Improvement Program THE C DUUB---*-TE Masterpiece on the Mississippi W RRC BOD Capacity Upgrades $1.1 million total 31 1 • • � • _ - . I I I Priority Catfish Creek Sewershed Interceptor Sewer & o _ WRRC Treatment Facility Improvements — f®� a w/ proposed FY25 budget & schedule requests (2-8-24) ((row #] references C/P Ranking Spreadsheet dated 2-2-24) Catfish Creek Sewershed Interceptor Sewer Improvements: Old Mill Road Lift Station & Force Main: (1st Phase Focuses 3, South Fork Interceptor to Address Major Capacity Constraints) V Total Project Cost $30,070,818 (design & construction) from FY23-FY27 (design & construction) from FY26-FY28 ¢ Total Project Cost500,000 - includes previously approved budget requests in FY23 & FY24) SR -FY26 Request: $500,000 SRF [row 70] & $200,000 Cash [row 71] (year total of $0.7M) j] �p (this Request -FY25 Request - $9,802,800 SRF [row 77] & $300,000 Cash [row 78] (year total of $10.1 M) - FY27 Request: $4,837,212 SRF [row 70] & $100,000 Cash [row 71] (year total of $4.9M) �n®� - - - FY26 Request - $11,176,900 SRF [row 77] - FY28 Request: $8,240,000 SRF [row 70] -FY27 Request - $2,019,468 SRF [row 77] SW Arterial Sewer Extension: Total Project Cost $3,000,000 & from FY27-FY29 - (design construction) - FY27 Request: $200,000 Cash [row 89] FY28 Request: $200,000 Cash [row 89] & $2,163,076 SRF [row 901 (year total of $2.36M) - FY29 Request: $2.266,762 SRF [row 90] 'Note: The design was split across FY27 & FY28 due to cash flow fund restrictions, specifically for FY27, and the schedule of the "Old Mill Road Lift Station & Force Main" [rows 77-78) and the "Catfish Creek Sewershed Interceptor Sewer Improvements" [rows a 70-71] pi ojects whose construction status will dictate the schedule of this project.;- [� 9 �m m Industrial Controls: Total Project Cost $4.829.838 (design &construction) from FY25-FY27 - FY25 Request: $750,000 SRF [row 111] & $311, [row 112] (year total of $1.1 M) - FY26 Request: $450:000 SRF [row 111] & $450,000 [row 112] (year total of $0.9M) - FY27 Request: $630,000 SRF [row 111] & $370,000 [row 112] (year total of $1.OM) _ High Strength Waste: Total Project Cost $6.211,000 in FY25 - FY25 Request: $6,211,000 SRF [row 1091 O WRRC Facility Plan: Total Project Cost $315.000 in FY25 o _ -FY25 Request: $315,000 SRF [row 114] 'Note: This project will facilitate assessments, prioritizations, and long-term planning for the '� wastewater treatment plant to more effectively utilize available sewer funds" .M _ Capital Improvement Program Schmitt Island Sanitary Improvements $2.6 million total THE C DUUB---*-TE Masterpiece on the Mississippi 33 Capital Improvement Program THE C DUUB---*-TE Masterpiece on the Mississippi Southwest Arterial Water Main Extension $1.7 million total 34 Water Service to S.W. Arterial & N. Cascade Road Intersection 2018A zrd =I-GII Masferpiem on the Mississippi Concept Estimation Plan O \' = E%ISTING WATER MAIN SEIPPEL RD OO' ZONE-4, (TOTAL) ' LENGTH: 12,130-FT COST: $3 043.527 , ZONE-3, 12" & 16" WM -- - •� LENGTH: 7,110-FT �• COST: $1 679 369 N � O ZONE-4, 16" WM �• —� m LENGTH: 6,700-FT `•� --a,\ 21 ACRE 4 h • o— o. COST: $1,618.527 • •�• LOT ' 39 ACRE 4 o �.� LOT A� a Fg SHREWSBURY LN_ f • `• �•yi• �p DR Y STONE VALLE �0 ZONE-4, 16" WM •♦•�• �I •♦. , LENGTH:5,430-FT 11r •�� 19 ACRE PRESSURE ZONE #3 N LOT EAST SIDE OF HWY-52 ENGLISMILL 25 ACRE ♦• °NTy PUMP STATION ATION LOT ` FNOLS - wq<S •`. Ny0 FR(N I BARRINGTON DR SARRINGTON CT PO ¢ PRESSUREZONE#4� S� uP� MILLER �WESTSI DE OF HWY-52 �Op-71� COM LACNIES Capital Improvement Program THE C DUUB---*-TE Masterpiece on the Mississippi Private Lead Water Service Line Replacement Project $5.7 million total Construction costs are 49 % forgivable, whereas non -construction costs such as engineering services are non -forgivable per BIL Funds. W: Capital Improvement Program THE C DUUB---*-TE Masterpiece on the Mississippi Source Water PFAS Reduction Project $9.5 million total 37 Capital Improvement Program THE C DUUB---*-TE Masterpiece on the Mississippi Water Third Pressure Zone Connection (from TanzaniNte Drive to Olympic Heights) $2.0 million total TY Capital Improvement Program DUB---*-TE Masterpiece on the Mississippi Chaplain Schmitt Island Sanitary Sewer Improvements $218 000 ARPA Grant (Total project cost = $2.9 million) 39 TY Capital Improvement Program DUB---*-TE Masterpiece on the Mississippi Kerper Blvd. Sanitary Sewer Lift Station Replacement $1.5 million ARPA Grant (Total project cost = $1.5 million) Tom M� I I I I Ile] ®®® ®© ©�® Priority Chaplain Schmitt Island &Kerper Boulevard Sanitary Improvements 4 ®®e ,d c w/ proposed FY25 budget & schedule requests (2-8-24) ©© ° © Grow #] references CIP Ranking Spreadsheet dated 2-2-24) e ° °© ®a® °©� ©©°°° °°® ©© eG Qk! m e e o Ub 0 0 1y _ ® ® © ® ©:;CJI wee A ° ° ® ® e"`3 0 ® Kerper Blvd Lift Station Replacement: (does NOT impact FY25 CIP request, handled through BA#2 during FY24) ° Q w e e © © �® © -FY24 BA#2 Request $1,498,266 ARPA [row 151] e e © e e ° © ° ® ® -'Note: $259,011 of this total amount has already been approved for FY24 BA#2 via memo dated 12-15-23 e. I 00 ® 1- P k ® e e e ® ®® ® gpvas Ave 6, a & e — - ..rN . ® 6 Kerper ClLS ©� .,�� .Q ©�© �3C Ca e Kerper Blvd LS ®" ' ♦ ® ,, ° e o ewe ® ® ®© eb t3� ® ICI. Schmitt Island Improvements: Total Project Cost $2,858,380 (design & construction) from FY24-FY25 - FY24 Request: $218,380 ARPA (does NOT impact FY25 CIP request, handled through BA#2 during FY24) [row 153] - FY25 Request: $2,640,000 Cash [rows 97-99] LEGEND Kerper Ct LS Service Area ■Kerper Blvd LS Service Area City Limits Note: Flows from Kerper Blvd LS Service Area discharge into Kerper Ct LS Service Area Leveraging Grants THE C DUUB---*-TE Masterpiece on the Mississippi Bee Branch Gate Pump Replacement $28.2 million total ($8 million US EDA Grant) �N Leveraging Grants THE C DUUB---*-TE Masterpiece on the Mississippi 14th Street Overpass • $25 million RAISE Grant • $9.2 million DIVIATS *Support from Dubuque Racing Association (Total project cost = $43 million) 43 Leveraging Grants �,u49f�di R7uI9�il�jr:Ix:1�VC]1I7G7 V(L..' - : - nva/xwx I■ r7aa,c.z . m . III ralln l u Il�cl " raal7r�annrl - _. � A _ r7svvnx�.v_„4Ylsuynacn iL•ii:4tr u - ' .. rcac4vex9L.LIulY,i1�.71:ix9r rK11:4yr r 4yllx��cwaaml�lsla�•a.Ix.Y ' �1F �� LUI:71�f'�'3JIIYi11IlIlI1 - �: -` ['71' lL�iEiY17n1uU7:7 i7rAx0�9➢1dIlA:I10r f ►1G4YI - � �-•' e ! 71 1 9 ,Ta 19:IU7:71�i7�#igC•L'Al[44( ''�; , relr.4vaxa� 1 clixav_tfycmaalala � . ra•7l l lxmmus- 1 ,r ' .114ldlx. f Y>r1:Flr 'I� � 4 . rrno�.yl THE C DUUB---*-TE Masterpiece on the Mississippi 9,I-tea.: 40, 1l = . ip I - 4 A .f ` --"`' 19:7P7.•7YI1 ffimi']E:1Yp eilill _ J f[7C4YI:1xiILl:1SCGDPIIZ71i 77I1 z,J'' �I � r_Wu11:79R'I:Ixx:r�7:7mi:Z I9471 L7,4�, O Of I�ac.�aus7s7•art1lH[mv. ' ' .__. rlac4ylsxaexx.>,�raa:cramlxl � � ,. ��KK Ix:11.ZtliY11�1519:U1/xulx:IF1 _OK7lI_111x: ' I f1rYx11: E 1 ii Leveraging Grants BUILDING BRIDGES TD EMPLC)YMENT AND Ed OVO Pr "a}11 THE C DUUB---*-TE Masterpiece on the Mississippi yll - — ,qlft r. il Leveraging Grants THE C DUUB---*-TE Masterpiece on the Mississippi al .everaging Grants THE C DUUB---*-TE Masterpiece on the Mississippi Schmitt Island Iowa Amphitheater is $3 million Iowa Economic Development Authority Grant • Support from Dubuque Racing Association (Total project cost = $15.8 million) -!h Leveraging Partnerships DUB---*-TE Masterpiece on the Mississippi Northwest Arterial & US20/Dodge Street Intersection Improvements $17.5 million total cost $12 Iowa DOT allocation $5.5 million City contribution Leveraging Partnerships •.a A �.�� B Hnuber Real Estat LTC KOV, Albert Oia �.�8 Mndellne G. Kul, ... h Gh pracnc S be 2 by Gas : Ra, Stabon �� Stu" State of Iowa DOT Dr all, Lip RGK Sol,,of Portable Iowa D07 I R Statefly. r - DOTI, ti,y Botdin95 Too,*, - us-2o WEzoo IIC.�n e FRw us - -w �.. _ E Saddle II de0 9�RFA A4ulbple NAPA" e°a� Eng:c..ci,.• 9 -,Tenants, F II A -t k! _ 1 K tzq Albed G. 8 �1.rt.clj ly Net Assessed V $170,040 - Owner OCCu led 2 Damaln Llp -RGKdings_County Net Assessed Value 208470 - Tenant 3. Oh Proper) es LLAssessed Value - $205420 Co cia1Herria Pemily TrusAssessed Value $109820 Commercial -0 IN" i.. JD A to r Sls ISpa Gallery ') Y ',Hal , Multiple Carpel andZ1d ITe t USA,Bynn 'Slle lows of Dor MCDONALD DRIVE - �Us213--1 —^ All Around 4 THE C DUUB---*-TE Masterpiece on the Mississippi __ - -- - - - Us-2o_ W6rr - -- _ US20 ES N islet 'Finnin _ 4 � Aun Herd Has iUl -a r o ,. 3iNeumelsler . ooc� �il �,•' Public Safety Public Safety Software: $3 million THE C DUUB---*-TE Masterpiece on the Mississippi • Police Department, Fire Department, Emergency Communications, Dubuque County Sheriff's Department, volunteer fire departments, and other law enforcement agencies in Dubuque County. • Dubuque County contributing $1.5 million W Public Safety THE C DUUB%TE Masterpiece on the Mississippi Fire Capital Budget - $8.8 million • Fire Engines (2): $1,450,000 *Ambulance: $400,000 • Fire Rescue Boat: $340,000 • Fire Burn Tower Improvements: $466,676 • Fire Station Expansion: $4,773,700 • Fire Bunk Room Remodel (All Stations): $1,395,000 51 Streets THE C DUUB---*-TE Masterpiece on the Mississippi • 5 miles of asphalt overlay projects by Public Works Department • 14th Street Overpass, Roundabouts, & Related Improvements Northwest Arterial & US20/Dodge Street Intersection Improvements *Central Avenue Corridor Streetscape Improvements 52 CREATING AN EQUITABLE COMMUNITY OF ';HOICE A H ig h =Performance Organization (and Community) that is Data -Driven and Outcome -Focused built on the four pillars of: Resiliency Sustainability Transparency Equity Compassion Through Planning, Partnerships, and People 53 Budget Public Opportunities • Public Head • Public Meeti 8, and 9 nput THE C DUUB---*-TE Masterpiece on the Mississippi ng on FY2025 Proposed Property Tax ngs: March 26, 27, and 28, April 2, 4, • Public Hearing to Adopt: April 11 • Budget Comment Form at wvvW.citvuldubuque.orq/FY2025budget *Contact City Council: www.cityordubuque.orq/councilcontacts 54